Spirit Airlines touts 'massive progress' in bankruptcy

Core Viewpoint - Spirit Airlines is undergoing significant restructuring efforts to revitalize its operations following its second Chapter 11 bankruptcy filing in less than a year, driven by high costs and weaker demand [2][3]. Financial Developments - The airline has secured an agreement with debtholders for up to $475 million in debtor-in-possession financing, pending court approval, along with an additional $150 million from a major aircraft lessor [2]. - Spirit Airlines reported losses exceeding $250 million from March to June after emerging from bankruptcy earlier this year [2]. Operational Changes - The airline is implementing cost-cutting measures, including the reduction of 40 routes and the furloughing of approximately one-third of its flight attendants [3]. - Discussions are ongoing with the pilots' union to achieve around $100 million in additional cost reductions [3]. Management Perspective - The restructuring lawyer for Spirit Airlines emphasized that skeptics of the airline's turnaround should observe the ongoing efforts rather than express pessimism [3].