Spirit Aviation Holdings, parent entity of Spirit Airlines, has reached an agreement in principle with its pilots and flight attendants as part of its ongoing Chapter 11 bankruptcy process.

The agreements, struck with the Air Line Pilots Association (ALPA) and the Association of Flight Attendants-CWA (AFA), were crucial for the airline to meet a key requirement to obtain subsequent funding as part of its debtor-in-possession (DIP) financing. While the terms of the deals were not disclosed, local media reported in previous days that Spirit was seeking a combined USD100 million in savings in concessions from its pilots and flight attendants.

The ultra-low-cost carrier estimated that the annual savings from these agreements in principle will achieve the target necessary for the company's next draw under its DIP financing.

In addition, Spirit's senior leadership "has committed to taking a salary reduction at a percentage not less than the pilots' group reduction upon ratification of a tentative agreement," the company said.

If new deals with the pilot and cabin crew unions had not been reached, reports indicated that the carrier was planning to file a request with the bankruptcy court to amend or even terminate its labour contracts, using Section 1113 of the bankruptcy code. This provides the management with the ability “to reject all or part” of the CBAs, if both sides negotiated in good faith.

Finally, Spirit is reportedly looking to cut about 150 salaried roles and discontinue services at Milwaukee General Mitchell, Phoenix Sky Harbor, Rochester, NY, and St. Louis Lambert International effective January 8, 2026, as well as Bucaramanga in Colombia, from January 13.

These cuts are in addition to previous announced furloughs of about 1,000 pilots between 2025 and 2026, 1,800 flight attendants (effective December 1), and the airline’s exit from 11 markets, alongside some other fleet, capacity, and infrastructure reductions.