Spirit Airlines is moving forward with plans to auction 20 of its Airbus A320 and A321 aircraft as part of its ongoing bankruptcy restructuring.
The ultra-low-cost carrier filed for Chapter 11 protection for the second time in a year in August 2025, citing financial pressures and a need to realign its fleet with its updated commercial strategy.
In a court filing submitted Wednesday in New York, Spirit Aviation Holdings asked a US bankruptcy judge to approve bidding procedures for the sale.
The airline said shrinking its fleet would help lower maintenance, storage, and operating costs, while allowing the sale proceeds to pay down debt tied to the aircraft.
According to Reuters, CSDS Asset Management, an aviation asset manager, has emerged as the first bidder. The firm has offered approximately $533.5 million for the 20 planes.
If the court approves the auction process, Spirit will solicit competing offers starting at about $554 million. The auction and sale are scheduled for April.
Spirit Airlines seeks court approval to auction 20 Airbus jets for about $500 million
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Spirit Airlines Moves to Auction 20 Jets
A Spirit spokesperson emphasized the importance of the sale in stabilizing the airline's finances, saying, "Selling these aircraft is critical to matching our fleet size with our redesigned commercial and network plan. It will help reduce costs while supporting our long-term recovery strategy."
The airline has faced a challenging year, filing for bankruptcy twice amid rising operating costs and an evolving competitive landscape, ET reported.
By reducing its fleet, Spirit hopes to streamline operations and ensure that resources are focused on profitable routes.
The court filing notes that the sale proceeds will primarily be used to repay debt linked to the aircraft.
Judge approval of the bidding procedures would allow Spirit to move forward with soliciting higher bids and completing the auction, potentially improving the airline's balance sheet and financial flexibility during bankruptcy.
Analysts say Spirit's move could help it remain competitive among ultra-low-cost carriers while addressing its debt obligations.
Originally published on vcpost.com
