Spirit Airlines Reaches Creditor Deal Amid February Flight Cancellations

Amid significant operational disruptions and widespread flight cancellations in February 2026, Spirit Airlines announced it has reached an agreement with creditors, a critical step toward emerging from its second Chapter 11 bankruptcy. The Ultra Low-Cost Carrier (ULCC) has been grappling with persistent airline staffing shortages, leading to schedule instability and impacting thousands of passengers, particularly in its South Florida hubs.

The agreement marks a turning point in the carrier's efforts to restructure after filing for bankruptcy protection for the second time in August 2025, following an initial filing in November 2024. The ongoing operational issues underscore the challenges facing the airline as it attempts to reorganize under financial pressure.

Bankruptcy and Restructuring Details

On February 24, 2026, Spirit Airlines announced it had reached an agreement in principle with its secured creditors on the terms of a restructuring plan. According to a press release from Spirit Airlines, the plan is designed to significantly improve the company's financial standing. The restructuring is projected to reduce the airline's debt and lease obligations from $7.4 billion to approximately $2.1 billion.

The carrier anticipates emerging from Chapter 11 protection in the late spring or early summer of 2026. As part of the reorganization, Spirit stated it will "align its network and capacity to routes and periods of strongest consumer demand." This strategy involves increasing aircraft utilization during peak travel days while reducing flights during off-peak periods, providing more flexibility to adapt to seasonal market changes.

Operational Meltdown in February

The path to restructuring has been turbulent for passengers. Throughout February 2026, the airline canceled more than 250 flights, a figure unrelated to weather events. Data from Travel Tourister indicates that on February 9, 2026, alone, Spirit canceled over 50 flights, which affected an estimated 8,000 to 12,000 passengers. The disruptions were heavily concentrated at key Florida airports, including Fort Lauderdale-Hollywood International Airport (FLL), Orlando International Airport (MCO), and Palm Beach International Airport (PBI).

Travel industry analyst Gary Leff of the blog "View from the Wing" commented on the carrier's situation, stating, "Spirit Airlines has been suffering crew shortages for months now. They've been acknowledging a lack of crew in many of their cancellation announcements." He added that uncertainty around the airline's future has likely contributed to employee attrition.

Staffing Shortages and Labor Response

The core of Spirit's operational unreliability has been attributed to severe staffing shortages. The airline furloughed between 1,300 and 1,800 flight attendants in December 2025. In a move to stabilize its operations, Spirit announced around February 13, 2026, that it was recalling 500 of those furloughed employees.

The Association of Flight Attendants-Communications Workers of America (AFA-CWA), the union representing Spirit's cabin crew, acknowledged the positive impact of the decision. The union stated the recall is "good news for 500 flight attendants and their families and critical to those of us on the line that have faced a grueling operation over the last two months." Despite this, the carrier continues to face challenges in retaining its workforce amid the ongoing bankruptcy proceedings.

What Comes Next

With the creditor agreement in place, Spirit Airlines will now move toward securing court approval for its reorganization plan. The airline's leadership has outlined a strategy focused on a smaller, more focused route network and improved operational efficiency. The success of this plan hinges on stabilizing its workforce and restoring passenger confidence, which has been eroded by the recent wave of cancellations.

The carrier's emergence from bankruptcy, targeted for summer 2026, will be closely watched as a barometer for the health of the Ultra Low-Cost Carrier (ULCC) model in the U.S. market. The industry continues to face headwinds from persistent staffing shortages and rising operational costs, putting pressure on carriers that rely on a high-volume, low-margin business model.

Why This Matters

This development at Spirit Airlines illustrates the acute pressures facing the ULCC segment of the aviation industry. The carrier's struggle highlights how financial instability, when combined with systemic airline staffing shortages, can quickly lead to severe operational failures. For the broader market, Spirit's emergence as a smaller, more focused airline could reshape competition on key domestic routes and signal a trend toward more conservative growth strategies among budget carriers.

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