Spirit Airlines’ Pilots Appeal to Bondholders to Keep Airline Afloat During Bankruptcy

The pilots of Spirit Airlines are reaching out to the airline’s bondholders in an effort to keep the carrier afloat as it goes through Chapter 11 bankruptcy. The loss of financial support could lead to liquidation, which would have significant consequences for workers, South Florida, and destinations such as the U. S. Virgin Islands, where Spirit plays a crucial role in air connectivity.

In an open letter published on January 13, the Air Line Pilots Association (ALPA), which represents Spirit’s pilots, urged creditors, including Miami-based hedge fund Citadel, to continue funding the airline during its restructuring. The letter emphasized that withdrawing support could force Spirit into liquidation, jeopardizing thousands of jobs and causing severe economic damage to South Florida, where the airline is based.

The letter, signed by ALPA President Jason Ambrosi and Spirit pilots’ chairman Ryan Muller, acknowledged progress in the restructuring process but also highlighted the airline’s precarious position. Ultimately, the creditors hold the power to decide whether Spirit survives or collapses.

This appeal comes as Spirit works through its second Chapter 11 bankruptcy filing in less than a year. The airline sought protection on August 29, 2025, in the U. S. Bankruptcy Court for the Southern District of New York. The case is proceeding under Case No. 25-11897 as the airline faces heavy debt, fierce competition, and ongoing operational challenges.

Important dates are approaching in the process, with a bankruptcy hearing scheduled for January 21 and creditors required to file proofs of claim by January 27 at 4:00 p. m. ET. In the meantime, Spirit has taken several steps to ensure its viability.

In December 2025, Spirit’s pilots agreed to a restructuring plan that included approximately $100 million in concessions over two years, including temporary pay cuts and reduced retirement contributions. The airline also secured an additional $100 million in debtor-in-possession financing, with only $50 million initially disbursed. The remaining funds are contingent on meeting milestones tied to a standalone reorganization or a potential sale.

Despite these measures, Spirit has continued to implement cost-cutting actions. The airline has furloughed up to 365 pilots, demoted 170 captains, and closed maintenance facilities at Chicago O’Hare and Baltimore airports as of January 1, 2026. It has also scaled back routes across its network, which contributed to disruptions earlier this month, including January 3 when Spirit accounted for nearly one-third of all U. S. flight cancellations.

For now, operations are still ongoing, with Spirit maintaining flights across its network. However, the uncertainty has led industry experts to draw comparisons to past airline failures. The carrier is also seeking court approval to put a hold on a securities lawsuit against its executives, arguing that suspending the case would allow management to focus resources on the bankruptcy process.

Beyond its Florida headquarters, Spirit