Spirit Airlines Pilots Urge Bondholders to Support Reorganization in Bankruptcy Court
The pilots of Spirit Airlines, represented by the Air Line Pilots Association (ALPA), have made an unusual appeal to the company’s bondholders. In an open letter, the union urges bondholders to continue backing the company’s reorganization in bankruptcy court and to reject liquidation, which would result in the loss of thousands of jobs and the destruction of South Florida’s hometown airline.
Background of the Bankruptcy Case
Spirit Airlines, based in Dania Beach, Florida, filed for Chapter 11 bankruptcy protection in August 2025 due to increased competition, heavy debt, and a default declaration from its largest aircraft lessor. Since then, the company has made progress in cutting costs by renegotiating leases, revamping its route system, and reducing labor costs through agreements with unions.
However, the union’s letter, signed by Spirit Master Executive Council Chairman Ryan P. Miller and ALPA International President Jason Ambrosi, suggests that the union is uncertain about the intentions of major lenders as the bankruptcy case nears a conclusion in New York. The letter, titled “Protect Jobs; Complete the Restructuring of Spirit Airlines,” was published on the ALPA website on January 13.
Union’s Concerns and Request to Bondholders
The union expresses concern that bondholders may not honor their funding commitments, which could lead to a liquidation of the company. The letter highlights one of Spirit’s principal bondholders, Citadel, a Miami-based firm with significant influence in the restructuring process. The union emphasizes the responsibility of bondholders not only to the process but also to the community and the thousands of workers whose jobs depend on the survival of the airline.
The union requests that bondholders fulfill their existing funding commitments and allow the restructuring to proceed. They point out that access to this funding could be the difference between a successful reorganization and a forced liquidation, which would have devastating effects on the community and the economy.
Citadel’s Response
Citadel, which relocated its headquarters from Chicago to Miami in 2022, released a statement in response to the union’s letter. The statement notes that the hardship faced by Spirit Airlines is a result of the previous administration’s aggressive antitrust agenda and opposition to the Spirit-JetBlue merger in 2024. Citadel also states that they have consistently supported Spirit in its efforts to reorganize and serve the flying public.
Bondholders’ Response
The law firm Akin Gump Strauss Hauer & Feld represents Citadel and other members of an ad-hoc group of secured noteholders in the Spirit Chapter 11 cases. They did not immediately respond to a request for comment. Bloomberg News, which first reported on the pilots’ letter, identified other noteholding creditors as Pacific Investment Management Co. and Cyrus Capital Partners.
Conclusion
Despite fears raised in the union’s letter, the bankruptcy case file does not contain any requests to convert the case to a Chapter