Spirit Airlines announced that CEO Ted Christie has resigned, effective immediately, shortly after the company emerged from bankruptcy and reorganized its board of directors. Spirit Airlines’ Chief Commercial Officer (CCO) Matt Klein is also leaving the company, with company insider Rana Ghosh assuming the position.
Christie, who has led the low-cost airline since 2019, will be succeeded temporarily by an interim leadership team, consisting of CFO Fred Cromer, COO John Bendoraitis, and General Counsel Thomas Canfield, that will oversee the company until a new CEO is selected.
This leadership change coincides with Spirit’s transition from a budget airline to a premium carrier. The airline, which faced many challenges in its attempt to recover from the global COVID-19 pandemic, filed for Chapter 11 protection in 2024 and successfully emerged from the bankruptcy in March of this year.
Spirit Airlines, Inc. is an American airline known for its ultra-low-cost model, with its headquarters located in Dania Beach, Florida, within the Miami metropolitan region. The airline provides scheduled services across the United States, the Caribbean, and Latin America. As of 2023, Spirit ranked as the seventh largest passenger airline in North America and held the title of the largest ultra-low-cost carrier in the region.
In February 2022, Frontier Airlines revealed its plan to acquire Spirit Airlines, contingent upon regulatory approval, with Frontier Airlines’ stock designated as the surviving entity. This merger would position the newly formed airline as the fifth largest in the United States. However, in July 2022, Spirit’s shareholders voted against Frontier’s proposal.
In April 2022, JetBlue made an offer to acquire Spirit for $33 per share in cash, totaling approximately $3.6 billion. By May, Spirit announced that its board of directors had opted not to pursue JetBlue’s offer. Spirit Airlines expressed concerns that the acquisition by JetBlue, a higher-fare airline, of an ultra-low-cost carrier would likely face opposition from the U.S. Department of Justice’s Antitrust Division, which might conclude that such a merger would lead to increased fares for consumers. Additionally, Spirit pointed out that the Antitrust Division is currently examining JetBlue’s strategic alliance with American Airlines for similar reasons.
In July 2022, JetBlue entered into an agreement to acquire Spirit Airlines at a price of $33.50 per share, along with additional incentives for Spirit’s shareholders. This merger would have positioned the combined entity as the fifth-largest airline in the United States. Spirit’s shareholders approved the agreement; however, the Department of Justice intervened by filing a lawsuit to prevent the merger, arguing that it would lead to “increased fares, reduced seating capacity, and detrimental effects on millions of consumers.” The trial commenced in October 2023. On January 16, 2024, a federal judge ruled against JetBlue’s acquisition of Spirit Airlines, determining that the merger would be anticompetitive and detrimental to consumers.
Consequently, Spirit Airlines’ stock plummeted by around 47%, raising concerns about the airline’s future. Analysts speculated that Spirit might need to seek Chapter 11 bankruptcy protection, potentially leading to a liquidation process if it failed to devise a viable growth strategy. Nevertheless, on January 18, Spirit refuted these claims, asserting that it had no intentions of filing for bankruptcy and was actively exploring new strategies to secure its future. JetBlue ultimately abandoned its acquisition efforts on March 4, 2024, following the federal judge’s decision that the merger would diminish competition.