Spirit Airlines said on Wednesday that it had successfully emerged from bankruptcy, exiting a major corporate restructuring five months after first filing for bankruptcy.

The low-cost carrier originally filed for Chapter 11 bankruptcy protection in November 2024 in an effort to “position the company for long-term success.” That followed a failure to return to profitability in the aftermath of the COVID-19 pandemic’s onset.

While Spirit continued its normal operations through the bankruptcy proceedings, the airline reorganized its corporate structure and financial obligations behind the scenes. As part of the reorganization, Spirit will convert $795 million of funded debt into equity, significantly reducing the open debt that the airline will carry on its balance sheet. Spirit also received a new $350 million equity boost from existing investors, the airline said. The restructuring plan was approved by a federal judge last month.

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“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,” Spirit CEO Ted Christie said in a statement announcing the restructuring. “Today, we’re moving forward with our strategy to redefine low-fare travel with our new, high-value travel options.”

Spirit’s bankruptcy filing last fall came as the airline struggled to find its footing, facing billions in debt, a protracted ordeal managing an engine recall and changes in the business environment that left the airline at a disadvantage to its mainline competitors. U.S. airlines have become more reliant on premium revenue since the pandemic began, while traditional carriers also have learned to master the “basic economy” concept, somewhat neutralizing the competitive advantage that ultra-low-cost airlines like Spirit previously enjoyed.

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The airline has tried to stem the losses by shrinking its operational footprint, changing its fare product structure and introducing several tiers of premium seating options.

After a federal judge blocked the airline’s acquisition by JetBlue in early 2024, bankruptcy seemed all but inevitable to many analysts and observers. Frontier Airlines made an offer to acquire Spirit in late January, suggesting another reorganization option for the troubled carrier. However, Spirit rejected Frontier’s offer.

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