Sprit Airlines' pilots association representatives have urged the airline's bondholder Citadel and other bondholders to continue funding the airline to ensure its survival.
The airline has received critical debtor-in-possession (DIP) financing to ensure it can continue operations amid its Chapter 11 restructuring.
Florida-based Air Line Pilots Association (ALPA) for Spirit said in an open letter on Tuesday (January 13) that it “remains unresolved” whether fellow Florida-based Citadel and other Spirit bondholders will “honor their existing funding commitments and allow a restructuring to proceed”.
Spirit's other key bondholders include PIMCO, Western Asset Management, AllianceBernstein, and Arena Capital Advisors.
“Much of the restructuring work is already complete, and Spirit is well on its way to emerging from bankruptcy proceedings,” said ALPA. “Over the past few months, Spirit's pilots and other frontline workers have stepped forward in good faith to help save the company. Spirit pilots and flight attendants have given up $100 million in concessions because believe in a successful reorganisation and a future for Spirit Airlines."
ALPA added: “One of Spirit’s principal bondholders is Citadel, a Miami-based firm with significant influence in this restructuring. Citadel and the other bondholders are in a key position to decide what happens next. They have a choice to make — continue funding and allow Spirit’s restructuring to move forward or withhold funding and shutter thousands of jobs.”
Spirit Airlines reached agreement with its senior secured noteholders to amend its DIP credit agreement in December 2025.
The amendment provides for the previously agreed third funding round of an incremental $100 million, which was fulfilled in the month, with around $50 million available immediately to Spirit.
The remaining amount will be available upon meeting certain conditions of its Chapter 11 restructuring plan.
“Spirit is currently in active negotiations on each of these possibilities,” Spirit said in a statement at the time.
“Access to this funding could mean the difference between an airline that emerges from Chapter 11 and an airline forced into liquidation,” said ALPA.
“Citadel has consistently supported Spirit both pre- and post- bankruptcy in its efforts to reorganize and return to serving the flying public,” a Citadel spokesperson said in a statement to press. “The creditor group voluntarily approved a third leg of funding as recently as December to guarantee that Americans and their families could travel during the holiday period.”
Spirit Airlines filed for Chapter 11 in August last year — only months after emerging from bankruptcy protection in March.
In 2024, Spirit had faced significant challenges last year following its failed merger with JetBlue after the US Department of Justice (DOJ) blocked the move, before both airlines agreed to cancel the deal. Later in the year, Spirit and Frontier had a back and forth over a potential merger, with Frontier believing the airline to have over-estimated its value before Spirit ultimately deciding to independently proceed with its premium rebrand plan.
According to a Bloomberg report in December 2025, Spirit and Frontier had revived merger discussions, with the outlet reporting that details of a deal could have been announced by the end of 2025. No details of such deal have yet to materialise.
Airline Economics has requested comment from Spirit and the creditor group's counsel Akin Gump.