Spirit Airlines' Transformation Plans Lead to Upgrade from Fitch

Fitch Ratings announced on March 13, 2025, that it has upgraded Spirit Airlines, Inc.’s Long-Term Default Rating from 'D' to 'CCC+'. Additionally, the agency assigned a 'B-' rating and 'RR3' Recovery Rating to the priority secured exit bonds jointly issued by Spirit Airlines, Inc. subsidiaries Spirit IP Cayman LTD. and Spirit Loyalty Cayman LTD. However, Fitch has withdrawn the ratings for the loyalty program bonds due to ongoing restructuring during bankruptcy proceedings.

Despite the rating increase, Spirit remains affected by high leverage, risks associated with its transformation strategy, and ongoing cash losses that could strain liquidity if improvements in profit margins are delayed. A debt restructuring during bankruptcy has partially balanced these risks, leaving Spirit with less debt and no significant near-term maturities. Fitch anticipates that Spirit will continue to experience EBITDA-level losses into 2025 and potentially 2026, while expecting adequate liquidity in the near term.