Spirit Explores Merger During Second Bankruptcy

Spirit Airlines, now in its second Chapter 11 bankruptcy in less than a year, told investors in an October SEC filing that it is "actively engaged" in talks with multiple potential merger partners or buyers though no suitors were named. The carrier has launched a sweeping restructuring — furloughing hundreds of pilots and up to 1,800 flight attendants, cutting routes and schedule capacity (about 20% smaller in 2026 with seat capacity already falling sharply in 2025), canceling leases, selling assets and closing maintenance and warehouse operations in Chicago and Baltimore — and expects roughly $100 million in savings from the current filing. Spirit plans to pare its fleet to reliable A320/A321 types while removing many A320neo-family jets. Management said a merger or sale may be the "value‑maximizing outcome" after years of failed bids, and Spirit's board previously rejected a fresh Frontier proposal. The airline aims to return to annual profitability by 2027, and analysts say rivals Frontier, JetBlue and Southwest would benefit if Spirit leaves the market.