Spirit Airlines has emerged from Chapter 11 bankruptcy, having improved its balance sheet with bondholders converting $795 million in debt to equity.
The discount airline also received a $350 million equity investment as part of the restructuring arrangement and canceled its common stock.
New shares will trade in the over-the-counter market. The company said it expects to relist its shares on a stock exchange as soon as reasonably practicable.
Spirit reported a net loss of $1.23 billion last year, damaged by shifting consumer preferences toward higher-end flying, growing costs and groundings of Airbus A320neo planes while their Pratt & Whitney engines are inspected for potential metal contamination.
The airline had $902.1 million in cash and cash equivalents at the end of 2024.
Spirit filed for bankruptcy on Nov. 18 and said from the onset that it expected to complete the restructuring process by the end of March. The airline has continued flying throughout the process, though this month it has 14.9% fewer seats than a year ago, Cirium flight schedule data shows.
The carrier, traditionally popular with bargain hunters, has taken steps toward increasing its appeal to a broader range of flyers. In August, Spirit opened its first priority check-in lanes. The move came in concert with the introduction of a new slate of fare products, including an all-inclusive bundle centered around the airline's Big Front Seat.
"We're pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the guest experience," CEO Ted Christie said. "Throughout this process, we've continued to make meaningful progress enhancing our product offerings while also focusing on returning to profitability and positioning our airline for long-term success. Today, we're moving forward with our strategy to redefine low-fare travel with our new, high-value travel options."