Latest news with #TedChristie
New York Post
7 days ago
- Business
- New York Post
Spirit Airlines could soon go out of business — months after declaring bankruptcy
Spirit Airlines is warning that it may not survive the next year unless it can quickly raise more cash — just five months after emerging from bankruptcy protection. The budget airline said in a report Monday that fewer people are booking leisure trips within the US and tough competition from other carriers is making it hard to hit the money targets it promised after bankruptcy. The company cautioned that failure to secure additional funds could trigger loan defaults and force it to sell assets, including planes, airport gates and real estate. Advertisement 4 Spirit Airlines may cease doing business within the year unless it gets a significant cash infusion, the company said. Getty Images The airline's management said it faces 'substantial doubt' about its ability to keep operating beyond the next 12 months without fresh capital, citing uncertainty over the success of cost-cutting efforts and ongoing talks with stakeholders. Spirit also disclosed it may have to provide more collateral to its credit card processing partner to keep that relationship in place. Spirit's warning marks the latest setback in a turbulent period for the Florida-based airline, known for its bright yellow planes and low-cost fares. Advertisement It filed for Chapter 11 bankruptcy in November, becoming the first major US carrier to do so since 2011. The filing followed years of mounting losses, a failed takeover bid by JetBlue Airways, shifting passenger preferences toward more premium services and a large-scale engine recall that left many of its jets grounded. COVID-19's lingering effects, supply chain disruptions and heavy debt loads added to the strain. Advertisement 4 The budget airline said in a report Monday that fewer people are booking leisure trips within the US. REUTERS After rejecting a merger offer from Frontier Airlines in February, Spirit completed its Chapter 11 restructuring in March. The plan wiped out roughly $795 million in debt, brought in $350 million in new equity and set up a $275 million credit line. Then-CEO Ted Christie remained in place to lead a new strategy aimed at appealing to higher-spending travelers, revamping the frequent flyer program and boosting partnerships to increase revenue per passenger. Advertisement But the recovery has been rocky. Christie, who was due to receive a $3.8 million retention bonus, stepped down as CEO in late April. He was replaced by Dave Davis, former president and chief financial officer of Sun Country Airlines. Christie left the airline having received more than $4 million in bonuses as part of his 2024 compensation — plus a $1.5 million separation payment after leaving the company. In June, Spirit reported a $143 million net loss for the first quarter of 2025, along with a warning that it still faced 'going concern' risks. 4 The filing followed years of mounting losses, a failed takeover bid by JetBlue Airways and shifting passenger preferences toward more premium services. REUTERS By late July, the airline announced plans to furlough 270 pilots and reassign 140 others in a bid to conserve cash, even as it promoted new routes to Key West and the Cayman Islands starting later this year. The company hoped that adding destinations could help drive bookings, but industry headwinds continued to mount. In its latest earnings report, Spirit posted a second-quarter net loss of $245.8 million, widening from $192.9 million in the same period last year. Advertisement 4 After rejecting a merger offer from Frontier Airlines in February, Spirit completed its Chapter 11 restructuring in March. REUTERS The company said elevated capacity in the domestic market — meaning more seats for sale than demand could absorb — has kept ticket prices under pressure. Higher operating costs, combined with tariffs imposed earlier this year, have further eroded margins. These challenges have hit low-cost carriers like Spirit especially hard because they rely heavily on price-sensitive leisure travelers. The airline's troubles also reflect broader difficulties in the aviation industry. While some competitors have been able to offset weaker domestic demand with strong international traffic, Spirit's business is still centered on short-haul leisure routes, leaving it more exposed when vacation travel slows. Advertisement Management said that without significant improvement in its finances or a major infusion of cash, it may not be able to comply with the minimum liquidity requirements in its credit agreements. Spirit's latest moves to shore up its finances include exploring the sale of non-core assets such as surplus planes, airport gates and slots. However, the company acknowledged in its filing that there is no guarantee these efforts will succeed or be completed quickly enough to prevent further strain.
Yahoo
16-05-2025
- Business
- Yahoo
Spirit Airlines introduces new seats and ‘comfy' perks in bid for premium passengers
Spirit Airlines will be offering new incentives, including improved seats, in an attempt to lure travelers. The airline's newly announced options offer customers access to seats with extra legroom and a slew of accompanying perks. Spirit previously offered more space to passengers through a 'Go Comfy' option, which blocked off a middle seat in a row of three seats. According to the press release, this option will soon be phased out and replaced with seats with extra legroom. The flight package also includes a carry-on bag, no change or cancel fees, priority boarding, reserved overhead bin space, a snack, and a non-alcoholic beverage in addition to the larger seat. Seven rows toward the front of the plane, totaling more than 40 seats, will have 32 inches of space rather than the customary 28. The new 'Go Comfy' plan will be available for booking Thursday, and travelers will able to start flying in those seats July 9. 'Spirit's new premium options offer travelers exceptional value, and we're creating even more opportunities for Guests to experience them with our new extra-legroom seating option,' Rana Ghosh, Senior Vice President and Chief Commercial Officer at Spirit Airlines, said in a press release. 'We're also adding more value and perks for our loyalty members at a time when others are taking away benefits, giving our most loyal Guests even more reasons to choose Spirit.' Later this year, Spirit will be introducing its two free checked bags policy in collaboration with Bank of America. This will only be available to Free Spirit Travel More Mastercard Cardholders. Other updates to the Spirit Loyalty program include free upgrades to Free Spirit status members and cobranded credit card holders, and points redemption for travel options such as Go Comfy. News of the airline's upgraded perks comes a few weeks after the company emerged from bankruptcy protection. The budget airline said in March that its parent, Spirit Aviation Holdings, exited Chapter 11 after finalizing debt restructuring. The reorganization plan, which received the court's green light in February, aimed to bring the carrier back to profitability and boost resources to compete with rivals. 'We're emerging as a stronger and more focused airline,' CEO Ted Christie, who will continue to lead Spirit post-bankruptcy, said in a statement at the time. The restructuring deal allowed Spirit to convert $795 million of its debt into equity. The company said it also received a $350 million equity investment from existing investors to aid future operations. Sign in to access your portfolio
Miami Herald
13-05-2025
- Business
- Miami Herald
Spirit Airlines just added several new ‘comfy' benefits for travelers
You may not recognize Spirit Airlines. The Broward-based carrier is introducing four extra inches of legroom to an enhanced premium section and new loyalty program benefits, including upgrades. Yes, the same discount airline with bright yellow colors that travelers love to hate, is making it a bit more comfortable and fun to fly. On Tuesday, Spirit announced that it would 're-imagine' its Go Comfy section, turning it into a more traditional premium option, a sign that it intends to compete with bigger airlines. Spirit says it will reconfigure seating to carve out more legroom. The work will start in June and the majority of airplanes will be finished by July, with the remainder done in 2026. Travelers can start booking extra-legroom seats starting May 15, 2025, for travel beginning July 9, the airline said. Other amenities include preferred seating and a free carry-on bag. Route expansions Spirit also said it will offer nonstop flights between Fort Lauderdale-Hollywood International Airport and Savannah, Georgia; Chattanooga, Tennessee; and Columbia, South Carolina. That's important for FLL because Spirit is the top airline at the Broward airport. In March, Spirit accounted for 2.5 million passengers at FLL. While that marked a 12% decline from March 2024, it was by far the top airline with a 28% market share. JetBlue was second with 19%. The moves are the most significant since the airline named a new president and CEO, Dave Davies, who took over on April 21. He replaced longtime President and CEO Ted Christie, who resigned April 7 after successfully leading the company through restructuring. On Feb. 20, the U.S. Bankruptcy Court for the Southern District of New York approved the carrier's plan to continue operating as a business, and cleared bankruptcy shortly after. Davis came from Sun Country Airlines, where he was president and chief financial officer and a member of its board of directors since December 2019. He was credited with helping make it one of the most profitable airlines in the U.S., outperforming Spirit and Frontier. His team at Spirit is wasting no time making changes. 'Spirit's new premium options offer travelers' exceptional value, and we're creating even more opportunities for guests to experience them,' Rana Ghosh, senior vice president and chief commercial officer at Spirit Airlines, said in a statement. 'We're also adding more value and perks for our loyalty members at a time when others are taking away benefits.' Here's a breakdown of the new amenities and benefits: New comforts in Spirit's Go Comfy ▪ Preferred seating includes seven rows near the front of the aircraft and more than 40 seats ▪ In those seats, an extra 4 inches of legroom giving a total of 32 inches ▪ Free carry-on-bag ▪ No change or cancel fees ▪ Priority boarding ▪ Reserved overhead bin space ▪ Snack and non-alcoholic beverage New benefits to Free Spirit loyalty program members and Free Spirit Travel More Mastercard holders ▪ Increased options for redemption including using Free Spirit point for Go Big and Go Comfy ▪ Complimentary upgrades for Free Spirit status members and Free Spirit credit card holders to a Big Front seat and Comfy Seat at boarding, based on availability, extending to one guest on the member's reservation; starting in June ▪ New two free checked bags benefit for Free Spirit Travel More Mastercard holders; to start later in 2025, unspecified month ▪ New Free Spirit debit card will launch this fall; 'will allow anyone to earn Free Spirit points on their everyday spending and redeem those points for travel ... while receiving Group 2 Priority Boarding and a 25% rebate on in-flight purchases' Spirit also said that travelers who earn Free Spirit Gold and Silver Status will continue to enjoy all existing benefits including Shortcut Security and seat selection with no increase in the requirements to earn status for the 2025 program year. Guests with Gold Status will also continue to enjoy free bags, Wi-Fi (subject to availability), complimentary snacks and drinks, including alcohol on eligible flights. More information For more details on the new benefits or information on how to join the loyalty program, go to Spirit's website at
Bloomberg
17-04-2025
- Business
- Bloomberg
Spirit Airlines Names Industry Veteran Dave Davis as CEO
Spirit Airlines Inc. picked an industry veteran to lead the company's transformation to a more upscale carrier after its emergence from bankruptcy. Dave Davis, who until recently was president and chief financial officer at Sun Country Airlines Inc., will take over as chief executive officer and president at Spirit, replacing Ted Christie, who left on April 7. Sun Country is a Minneapolis-based low-fare carrier that makes direct flights mainly to leisure destinations alongside charter and cargo businesses.
USA Today
09-04-2025
- Business
- USA Today
Spirit Airlines CEO Ted Christie resigns as company rebrands as premium carrier
Spirit Airlines CEO Ted Christie resigns as company rebrands as premium carrier Show Caption Hide Caption Spirit Airlines comes out of bankruptcy protection Spirit Airlines announced plans to rebrand as a premium airline after emerging from bankruptcy protection. Cheddar U.S. discount carrier Spirit Airlines said on Monday that CEO Ted Christie has stepped down with immediate effect as part of a shakeup, weeks after the company emerged from bankruptcy and reconstituted its board. Chief Commercial Officer Matt Klein is also leaving and will be succeeded by insider Rana Ghosh. The departures come as the carrier works to move away from its no-frills image and rebrand itself as a premium airline. In case you missed it: 'See-through clothing,' 'offensive' body art can get you kicked off Spirit Airlines An interim office of the CEO, consisting of Chief Financial Officer Fred Cromer, Chief Operating Officer John Bendoraitis and General Counsel Thomas Canfield, will lead the company until a new chief is named. Christie joined Spirit in 2012 as its finance chief and took the helm in 2019. He guided the airline through the pandemic disruptions and a challenging period for low-cost carriers grappling with rising costs and a readiness among travelers to pay extra for a more comfortable journey as they pursued experiences. The Florida-based carrier filed for bankruptcy protection last November, following years of losses and heavy debt, as well as failed merger attempts. Spirit had been in merger talks with Frontier Group ULCC.O since at least 2022, but ended them in favor of a more attractive offer from rival JetBlue Airways JBLU.O. Its merger with JetBlue was ultimately scrapped after a U.S. judge blocked it on anti-competition concerns. Spirit, which has estimated that shift to premium would generate 13% more revenue per passenger, also plans to revamp its loyalty program and pursue alliances with other carriers. Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shilpi Majumdar and Sriraj Kalluvila
