DANIA BEACH, Florida: Spirit Aviation Holdings, the parent company of Spirit Airlines, plans to shrink its fleet to roughly one-third of its pre-bankruptcy size as part of a sweeping restructuring aimed at cutting costs and stabilizing the carrier's finances, according to a court filing.

The low-cost airline, which filed for bankruptcy protection twice within a year, has been marketing aircraft and exploring potential buyers while working through a restructuring process designed to streamline operations.

Spirit entered Chapter 11 protection in August last year with 214 aircraft. In October, it moved to reduce the fleet by about 100 planes through lease rejections and retirements.

Earlier this week, a U.S. bankruptcy judge approved Spirit's request to begin an auction process for roughly 20 additional aircraft from the 114 planes it currently operates. The filing on March 13 further advances those efforts.

"We are pleased to achieve another milestone that reflects the confidence our lenders and noteholders have in our future, with our plan better positioning Spirit to continue delivering value to American consumers," said Dave Davis, president and chief executive officer, in a statement.

Under the restructuring plan, Spirit expects to reduce its fleet to between 76 and 80 aircraft by the third quarter of 2026. The airline said the remaining fleet will consist mainly of Airbus A320 and A321ceo aircraft.

The company also expects its restructuring to significantly reduce debt and lease obligations. Those liabilities are projected to fall to about US$2 billion, down from roughly $7.4 billion before the bankruptcy filing.

Spirit is seeking to emerge from Chapter 11 by late spring.

Aircraft Sale Process Underway

The airline has already begun steps to sell aircraft as part of the restructuring.

On March 11, U.S. Bankruptcy Judge Sean Lane approved bidding procedures that allow Spirit to move forward with a sale process. CSDS Asset Management has been designated as the "stalking-horse" bidder, setting a minimum purchase price of about $530 million.

Other potential buyers have until April 20 to submit higher offers.

During the hearing, Spirit's lawyer, Marshall Huebner of Davis Polk & Wardwell, said negotiations with creditors have taken longer than expected in part because of uncertainty over fuel costs.

Volatility in energy markets linked to the war involving Iran has complicated forecasts for airlines' biggest operating expenses.

Judge Lane acknowledged those concerns. "Global uncertainty regarding fuel is just a fact of life for any airline," Lane said.

Focus on Core Routes

Spirit aims to confirm its Chapter 11 reorganization plan by the end of May or possibly June, Huebner said. As part of the restructuring, the airline plans to concentrate on its strongest markets, including Fort Lauderdale, Orlando, Detroit, and the New York City area.

While the company is shrinking its fleet in the near term, Spirit said it expects to begin adding aircraft again between 2027 and 2030 if profitable growth opportunities emerge.

The airline also plans to expand its higher-end offerings, including Spirit First and Premium Economy products, while continuing to roll out premium-economy seating across its fleet.