Spirit Airlines Targets 2027 Profit After Major Restructuring

Spirit Airlines expects to return to profitability by 2027, projecting a net profit of around USD 219 million after completing its restructuring under Chapter 11 bankruptcy protection. The ultra-low-cost carrier plans to streamline operations, reduce fleet size, and cut costs by half as it works toward a sustainable long-term business model.

In a recent regulatory filing, Spirit said its transformation plan includes redesigning its network, aligning its fleet with the revised route strategy, improving operational performance, and introducing premium product changes to boost revenue. The carrier also aims to optimize maintenance and engine support contracts to achieve substantial cost savings.

As part of the restructuring, Spirit intends to retain mid-life owned Airbus A320-200 and A321-200 aircraft while shedding leased units, reducing overall debt and lease liabilities by more than USD 3 billion, equivalent to annual rent savings of about USD 400 million. The airline currently owns 57 aircraft, while the rest of its 214-strong fleet is leased.

Operational challenges continue due to ongoing Pratt & Whitney engine issues, with nearly 80 aircraft either parked or awaiting repairs. Spirit plans to reduce its flying capacity by 20% in 2026 before resuming growth in 2027.

Additional cost-cutting measures include workforce reductions, vendor renegotiations, and airport rent cuts, expected to save over USD 450 million annually. Spirit forecasts a USD 804 million net loss in 2025 and USD 145 million in 2026 before achieving profitability in 2027, supported by USD 1.33 billion in debtor-in-possession financing.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com