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By Scott Hamilton

Nov. 18, 2024, © Leeham News: Spirit Airlines' bankruptcy will likely be its death knell unless a deep-pocketed savior emerges. The carrier filed a pre-packaged bankruptcy petition today, expecting to emerge in the 1Q2025. Uncertainties follow any Chapter 11 filing, however, and there is no guarantee Spirit will successfully reorganize.

• Spirit press release summarizing its Chapter 11 filing.

Spirit Airlines A320neo. Credit: Spirit Airlines.

However, a fairly large order book for the A320neo and A321neo could help lessors that hold a large portion of these orders remarket the aircraft to viable airlines.

Spirit, an Ultra-Low-Cost Carrier (ULCC), has nearly 100 neos on order. Thirty-three are for the A320neo, and 65 are for the A321neo. All but six have delivery dates from 2026 onward, well before production begins. Airbus can deliver these aircraft to a new buyer's specifications. Monument positions (lavs and galleys, for example) don’t have to be relocated, and interiors may be configured as a new buyer desires.

The biggest challenge will be whether interior companies can accommodate new Buyer Furnished Equipment (BFE) near-term. Safran, Collins and others are running late on some interiors as it is.

This chart shows the delivery stream for Spirit’s aircraft, as based on data from Cirium last month.