Spirit Airlines Makes Capacity Cuts as It Exits Bankruptcy
Skift Take
Key Points
- Spirit Airlines is reducing its capacity by 16% overall, with significant cuts at key airports like LaGuardia and Los Angeles International.
- Spirit is increasing its capacity at Atlanta Hartsfield Jackson International Airport by 26% as part of its strategic adjustments.
- The restructuring plan for Spirit Airlines includes a take-private deal backed by lenders and a focus on more profitable routes.
Summary
Spirit Airlines is implementing a 16% capacity reduction as it exits bankruptcy, with cuts concentrated at major airports such as LaGuardia and Los Angeles International. Conversely, Spirit is increasing capacity by 26% at Atlanta's airport, aligning with its strategy to optimize network capacity. The airline's restructuring plan involves a take-private deal supported by lenders and aims to focus on more profitable routes.
Spirit Airlines is making sweeping capacity cuts as it looks to readjust its network post-bankruptcy.
An analysis of data from Cirium showed that Spirit would have around a 16% decrease in seats for the second quarter. Spirit’s capacity at its busiest airport, Fort Lauderdale-Hollywood International Airport, is also down 16%.
Some of Spirit’s biggest cuts are in the Northeast and West Coast regions in the U.S. Capacity at LaGuardia is down at around 47% and down close to 34% at Los Angeles International Airport for the second quarter. Capacity at San Diego is down by nearly 45%.
However, the ultra-low-cost carrier appears to be making a play for Atlanta, which is a major hub for Delta Air Lines. Spirit is increasing its capacity at Atlanta Hartsfield Jackson International Airport by 26%. The carrier’s biggest rival, Frontier Airlines, recently announced a route expansion at the airport, adding nine new destinations.
“We routinely evaluate our network and make adjustments to support the company's business strategy based on current market and operating conditions,” Spirit said in a statement to Skift. “As part of this process, we adjusted our upcoming schedule to optimize network capacity and better align with travel demand.”
Spirit to Exit Bankruptcy
The deep capacity cuts come as a U.S. bankruptcy judge approved Spirit’s restructuring plan on February 20.
Spirit’s restructuring plan includes a bankruptcy exit through a take-private deal backed by lenders. The carrier’s top bondholders, which include Citadel Advisors, Pacific Investment Management Co., Western Asset Management Co. and UBS Asset Management, will receive control of the company.
Spirit previously said it expects to exit bankruptcy in the coming weeks.
The carrier filed for Chapter 11 bankruptcy in November, months after its proposed merger with JetBlue was struck down in court. Spirit has struggled to turn a profit in recent years for a variety of reasons, including Pratt & Whitney engine issues and sustained demand for premium and international travel.
The cuts are also part of Spirit’s plan to operate as a standalone carrier. Spirit executives proposed in a regulatory filing in November that the company would realign its network to focus on more profitable routes.
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Photo Credit: A Spirit Airlines A320neo. Airbus Airbus / Airbus
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