Spirit Airlines expects to return to profit in 2027

Spirit Airlines expects to achieve profitability in 2027 – its first annual profit in eight years. The company announced the forecast on Tuesday, noting that it will continue to post losses until then as it completes a major restructuring launched after its second bankruptcy filing in a year.

Like other U.S. low-cost carriers, Spirit has been struggling with rising operating costs, shifting customer preferences, industry overcapacity, and intense competition from major legacy airlines.

According to a regulatory filing released on Tuesday, the Florida-based airline expects losses of $804 million in 2025 and $145 million in 2026, before swinging to a $219 million profit in 2027 – its first since 2019.

As part of the restructuring, Spirit is reducing its operations and fleet and considering selling certain assets to strengthen its finances. The company plans to cut capacity by 20% next year, with a smaller network through 2026, followed by renewed growth from 2027 to 2029.

Spirit has already furloughed about 330 pilots and plans to furlough another 270 next month. In addition, starting December 1, the carrier will lay off around 1,800 flight attendants – roughly one-third of its cabin crew. These measures are expected to save $211 million in costs.

The airline also plans to sell selected assets, including its headquarters in Dania Beach, Florida, takeoff and landing slots at New York’s LaGuardia Airport, and thousands of spare parts.

Spirit forecasts that by the end of 2027, its transformation program will be fully implemented, allowing the company to reach EBITDAR (earnings before interest, taxes, depreciation, amortization, and rental costs) of approximately $900 million.