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Spirit Aviation Holdings, the parent company of Spirit \u200bAirlines, said on Friday it plans to shrink its fleet to about one\u2011third of its pre\u2011bankruptcy size, according \u200cto a court filing.<\/strong><\/p>\n The low\u2011cost carrier, which has been marketing aircraft and sounding out potential buyers, is pressing ahead with a deep restructuring aimed at cutting costs and stabilizing its finances after filing for bankruptcy twice within a year.<\/p>\n Spirit entered Chapter 11 protection in August last year with 214 aircraft, \u200bthen moved to cut roughly 100 aircraft in October through lease rejections and retirements.<\/p>\n Earlier this week, a U.S. bankruptcy judge approved \u200bSpirit\u2019s request to launch an auction process for roughly 20 additional aircraft, from the 114 planes the \u2060airline currently operates. Friday\u2019s announcement further advances its fleet\u2011cutting plans.<\/p>\n \u201cWe are pleased to achieve another milestone that reflects the confidence our \u200blenders and noteholders have in our future, with our plan better positioning Spirit to continue delivering value to American consumers,\u201d said Dave \u200bDavis, president and chief executive officer, in a statement.<\/p>\n Spirit said on Friday it intends to further reduce its fleet to 76 to 80 aircraft by the third quarter of 2026, primarily consisting of Airbus A320 and A321ceo jets, according to the filing.<\/p>\n Under the proposed restructuring, Spirit\u2019s debt and lease \u200bobligations are expected to be reduced to about $2 billion from $7.4 billion before the filing.<\/p>\n The carrier warned on a hearing on Wednesday that \u200bvolatility in fuel prices linked to the war involving Iran has complicated negotiations over its exit from Chapter 11.<\/p>\n The airline filed a restructuring support \u200cagreement \u2060and proposed plan of reorganization with the U.S. Bankruptcy Court for the Southern District of New York.<\/p>\n On Wednesday, U.S. Bankruptcy Judge Sean Lane cleared Spirit to move forward with bidding procedures that includes CSDS Asset Management as a \u201cstalking\u2011horse\u201d bidder, setting a floor price of about $530 million and allowing other potential buyers to submit higher offers by April 20.<\/p>\n During the hearing, Spirit\u2019s lawyer, Marshall Huebner of Davis \u200bPolk & Wardwell, said negotiations have taken \u200blonger than expected in \u2060part because fuel costs \u2014 a major expense for airlines \u2014 have become harder to forecast amid geopolitical uncertainty linked to the Iran war. That volatility, he said, has raised questions among creditors about Spirit\u2019s \u200bprojected liquidity and cash\u2011flow assumptions.<\/p>\n Judge Lane said those concerns were understandable, noting that airlines are \u200bparticularly exposed to swings \u2060in fuel prices driven by global events.<\/p>\n \u201cGlobal uncertainty regarding fuel is just a fact of life for any airline,\u201d Lane said.<\/p>\n Spirit is targeting confirmation of a Chapter 11 bankruptcy plan by the end of May or possibly June, Huebner said.<\/p>\n The airline said it will focus \u2060on its \u200bstrongest routes and markets, including Fort Lauderdale, Orlando, Detroit and the New York \u200bCity area.<\/p>\n Spirit also said it expects to add aircraft between 2027 and 2030, tied to profitable growth opportunities, and plans to expand its Spirit First and Premium \u200bEconomy products, continuing the rollout of premium economy seating across its fleet.<\/p>\n<\/div>\n