Spirit Airlines Seeks to Make Retention Payments as It Winds Down Operations

Last updated: 1 June 2026 22:20

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Spirit Airlines billboard along the Las Vegas Beltway © Quintin Soloviev

The recently shut-down low-cost carrier Spirit Airlines asked a U.S. bankruptcy court on Monday, May 4, for approval to pay retention bonuses to employees it retained as it winds down operations following its Saturday cease of all flights.

Wide view of Spirit Airlines’ maintenance area at an airport, centred on a large grey hangar with a bright yellow panel displaying the word “spirit” in black lettering above the open doors. Several yellow Spirit Airlines aircraft are parked on the apron on either side of the hangar, their tails and fuselages clearly visible against the blue sky. In the foreground, concrete taxiways and patches of green grass are marked with painted lines and signage, while the scene is brightly lit by clear daylight with no clouds overhead. — Spirit Airlines Maintenance Hangar at the Detroit Metro Airport (DTW) © Matthew Groh

Winding down on an emergency basis

In the court filing, the U.S. airline requested authorisation to wind down on an emergency basis, telling the court that the surge in jet fuel prices triggered by the conflict in the Middle East led to a rapid and unexpected decline in its liquidity situation.

According to ch-aviation, Spirit Airlines incurred nearly $100 million in additional fuel costs between March 1 and April 30.

Spirit’s chief financial officer, Fred Comer, said in the filing:

“Having fought valiantly for months to reorganize, and having all but succeeded, (Spirit is) left with no alternative to an orderly wind-down of operation.”

This comes days after the airline failed to secure a $500 million rescue package from the Trump administration that would have given the government up to 90% of Spirit’s equity, following objections from some creditors.

“It became clear on Thursday [April 30] that sufficient incremental liquidity will not be found, and there are no longer any viable paths to a restructuring or continued operations,” the court filing read.

In addition, the carrier is seeking to modify a bankruptcy loan to secure the necessary funds to proceed with the sale of its assets, including aircraft and spare parts.

Interior view of an airport check‑in area with several yellow self‑service kiosks arranged in a row on a patterned carpeted floor. Each kiosk has a large touchscreen with green lighting along the edges; one screen displays a yellow error message reading “Bad dog! Sorry, this kiosk is down,” illustrated with a cartoon dog and machine, while another reads “Touch here to start!” in English and Spanish. The kiosks show signs of wear with scuffs and scratches on the yellow panels, and metal floor plates sit beneath them. In the background, passengers stand near counters and additional kiosks, with queue barriers and overhead signage visible under bright indoor lighting. — Spirit Airlines check-in kiosks at Orlando International Airport (MCO) © Todd Van Hoosear

Payments to top executives

Spirit is also seeking the court’s approval to pay $10.7 million in retention bonuses to employees who remain with the company as it ends operations. Reuters reports these bonuses would average $76,000 per person, with the top three executives receiving a higher, undisclosed amount.

These payments would replace some of the payments Spirit would have made to senior executives under its annual incentive and cash incentive plans in place before it filed for bankruptcy, the airline said.

About 150 employees will reportedly stay with Spirit as it decreases its staff to around 40 after the first three months, when the liquidation plan is expected to be completed.

What’s your take on Spirit’s requests to the court? Share your thoughts in the comments.

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ByMarta Abreu

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News Editor - A recent master’s graduate in International Journalism with a strong interest in international and investigative reporting, including digital open-source methods. Drawn to humanitarian, environmental and political journalism, finance and institutions, they enjoy uncovering surprising angles and exploring complex stories in depth. Primarily a writer, they also have experience in podcasting and information visualisation, with an academic background in Communication Sciences.