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flag Spirit Airlines agrees to exit bankruptcy by summer 2026, slashing debt and cutting flights and fleet size to survive.

flag Spirit Airlines has reached a deal with lenders to exit Chapter 11 bankruptcy by late spring or early summer 2026, avoiding collapse after its second filing in August 2025. flag The agreement will reduce its debt from $7.4 billion to about $2.1 billion, enabling a major restructuring that includes cutting flights by nearly 40%, reducing its fleet by about 65%, and focusing on high-demand routes and peak travel periods. flag The airline will streamline operations, expand premium seating options, and strengthen its loyalty program while maintaining its low-fare model. flag The move follows years of financial struggles, including over $2.5 billion in losses since 2020, rising costs, and increased competition from legacy carriers offering budget services. flag Spirit will remain independent but aims to become a leaner, more sustainable carrier.

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