Two major U.S. airlines are planning for Spirit Airliens to cease operations as early as Saturday, according to The Air Current. I’d heard and discussed this with some readers last week as well. However Jon Ostrower points out,
- Spirit’s debtor-in-possession financing requires them to come up with either details of a potential sale transaction, or a standalone reorganization plan.
- Either one needs to be acceptable to its lenders.
- And the deadline to release the next $100 million in funding is Saturday.
- But no plan has yet been filed.
Spirit is losing over $3 million a day and needs this funding. Spirit denies that they are preparing to cease operations. And, they say, discussions with their lenders remain “ongoing” and “productive.”
In a story that I first broke earlier in the week, Spirit agreed to sell two Chicago O’Hare gates to American Airlines for $30 million. This transaction was approved by the bankruptcy court. Spirit intends to pay down debtor-in-possession financing with these funds.
JetBlue’s founder still thinks that Frontier and Spirit will merge. I believe Spirit’s pieces are more valuable than the airline itself at this point (and even if surviving as a standalone they’d probably be better off rebranding – the Spirit name is toxic). Their Fort Lauderdale gates, as well as gates and slots at congested airports, remain valuable assets.
Spirit has managed to gain flight attendant and pilot union approval for wage cuts, which helps reach their financial restructuring goals. Lower wages and career uncertainty has driven enough of an exodus from the airline that they’ve cancelled 2026 pilot furloughs. Aviation watchdog JonNYC says that many of these Spirit pilots are being hired by American Airlines.
"An example of why Spirit didn’t need to furlough. AA Union released a list of the last 3 new hire classes and where the pilots came from.
Out of 184 hired in the last 3 classes. 56 of those came from Spirit. 30% of new hires came from Spirit.
56 pilots left Spirit Airlines and…— JonNYC (@xJonNYC) December 12, 2025
I do not expect a Saturday shutdown. Spirit is not likely at zero cash without a weekend injection of the next $100 million. And it’s likely that their assets are worth more while they’re a going concern than simply parted out. So if no agreeable filing occurs by end of business today, discussions could continue into next week, despite the Saturday deadline.
It would make sense that American Airlines would one of the airlines preparing for Spirit’s demise.
That would be why AA bought the 2 gates in ORD so they don’t end up in a bankruptcy auction.
Spirit: “Why are there all these vultures circling around anyway?”
*Ralph Wiggum I’m in Danger meme*
It’s just a matter of time. And I sincerely hope that their employees have put their financial houses in order. I don’t wish this on anyone. Terrible how this always happens right before Christmas. The sharks are already swimming around the dead body.
Unless SPIRIT is acquired and merged into another Carrier such as FRONTIER their time is limited. jetBLUE is no longer an option because they do not have two nickels to rub together let alone acquire Anyone. The Big Four really do not anything from SPIRIT only assets and they are willing to sit it out and wait until the operation tanks.
Maybe not next weekend but I see no way out. Remember if creditors believe they will get a better return liquidating assets they’re are going to march in court and try to get their way. I don’t think Frontier wants to take on a 100 money losing airplane operation. Frontier has their own doubtful future. YTD losses of $190 million. Maybe pick some random assets in a liquidation sale.
Spirit is headed for liquidation. Game over. Frontier is not too far behind.
The Vultures believe is a rotten banana but calm down and stop talking so much garbage stop being a wiser Scot Kirby wannabe talking so much garbage about his competitors and leave NK alone on their process is good to have NK around and I believe they will came out of this difficult chapter and strive we need more airlines NOT less the Big 4 or 5 has ruined this damn industry consolidation hasn’t improved anything for anyone only for incompetent idiots arrogants SOAB that has such of brilliant ideas look at your current airlines and tell me if any of you are better than 20 or 30 years ago lets star WN? What about you AA? Do you remembered the great AMR ? Many airlines before didn’t do good because they were not good was only because stupid incompetent leadership like AW US DL NW TW RN Western Eastern UA CO etc NK is in this position just because an incompetent leader that no one mentions Ted Christie is the one to blame and the first bankruptcy was so stupid and incompetent that this fool should be in jail for all the millions he left with and his lieutenants for a pissed worthless incompetence performance and his asset’s should be seized and returned to NK this MFR shouldn’t be allowed to be in any other airline ever by the way I don’t work for NK just in case happy retired from this industry.
When Spirit Airlines declares bankruptcy, will American Airlines purchase additional gates at Florida airports so it can sponsor the weekly departure gate brawls currently hosted by Spirit Airlines?