This article summarizes reporting by Reuters and public court filings.

American Airlines Enters Spirit Bankruptcy Proceedings to Monitor Key Assets

American Airlines has formally inserted itself into the ongoing legal proceedings surrounding Spirit Airlines’ financial restructuring. According to reporting by Reuters, the Fort Worth-based carrier filed a “notice of appearance” in the U.S. Bankruptcy Court for the Southern District of New York regarding Spirit’s Chapter 11 case. This legal maneuver ensures American Airlines will receive all future notices and documentation related to the proceedings.

The filing, submitted on December 5, 2025, comes as Spirit Airlines navigates its second bankruptcy process in less than a year. While the move has sparked industry chatter, legal experts and analysts suggest the filing is a standard protective measure rather than a signal of an imminent merger or acquisition. American Airlines appears focused on safeguarding specific contractual interests, particularly regarding valuable airport infrastructure.

The Legal Filing: A Defensive Measure

The “notice of appearance” filed in Case No. 25-11897 allows American Airlines to monitor every motion and decision made during Spirit’s restructuring. According to court documents, American requested to be served with all papers moving forward. This is a routine step for any entity that is a creditor, landlord, or counterparty to contracts with a bankrupt company.

Focus on Airport-Specific Agreements

Industry analysis indicates that American’s primary interest likely lies in “airport-specific agreements.” Spirit Airlines operates out of several key hubs where American holds significant real estate and slot portfolios. Specifically, attention is focused on two major airports:

• LaGuardia Airport (LGA): This facility is “slot-controlled,” meaning takeoff and landing rights are federally regulated and extremely scarce. American Airlines has historically leased or divested slots to low-cost carriers like Spirit to meet regulatory competition requirements. If Spirit rejects these leases or liquidates, American may seek to reclaim these valuable operating rights.
• Chicago O’Hare (ORD): Similar to LaGuardia, gate space at O’Hare is a premium asset. Reports suggest American leases specific gates to Spirit. By entering the bankruptcy case, American ensures it has a seat at the table to protect its property rights should Spirit vacate these gates.

Spirit’s “Second Bankruptcy” Context

The legal filing by American Airlines occurs against a backdrop of severe financial distress for Spirit. The ultra-low-cost carrier filed for Chapter 11 protection on August 29, 2025, marking its second bankruptcy filing within a 12-month window. The airline had previously attempted a restructuring in late 2024 but failed to stabilize its operations due to mounting losses and engine recall issues.

Fleet Reductions and Lease Rejections

As part of its current restructuring efforts, Spirit is aggressively downsizing. Court filings reveal that the airline has moved to reject leases on approximately 87 Airbus aircraft. This reduction effectively halves the carrier’s fleet, creating a surplus of aircraft in the market and, crucially, freeing up gate and slot capacity at constrained airports.

“American Airlines filed a notice of appearance in Spirit Aviation bankruptcy proceedings and requested to receive all notices and papers served moving forward…”

, Reuters

This contraction presents both a risk and an opportunity for legacy carriers. While the market is flooded with pilot labor and airframes, the release of airport infrastructure allows competitors like United Airlines and American Airlines to potentially expand their footprints in key hubs like Chicago and New York.

AirPro News Analysis

Defensive Strategy Over Acquisition

While speculation often jumps to mergers when legacy carriers intervene in bankruptcy cases, our analysis suggests American Airlines is playing defense. The carrier is currently focused on its own balance sheet, aiming to reduce its total debt below $35 billion. Acquiring Spirit’s operations would involve significant integration costs, particularly in converting Spirit’s Airbus fleet to match American’s standards.

Instead, this “notice of appearance” is likely a strategy to “circle the carcass” for specific assets. If Spirit liquidates or shrinks further, American wants to ensure that the slots and gates it originally leased to Spirit revert to its control, rather than being auctioned off to aggressive competitors like United or Delta. This is a strategic check to maintain market share in constrained environments without the burden of buying the entire airline.

Frequently Asked Questions

Is American Airlines buying Spirit Airlines?
There is no evidence currently suggesting a buyout. The legal filing is a procedural step to monitor the bankruptcy and protect existing contracts, specifically regarding airport gates and slots.

What happens to Spirit Airlines flights?
Spirit continues to operate while in Chapter 11 protection, though it has significantly reduced its schedule and fleet size. Passengers should monitor their bookings closely.

Why is American Airlines involved in the court case?
American likely leases gates or slots to Spirit at major airports like LaGuardia and O’Hare. They are involved to ensure they can reclaim those assets if Spirit defaults on the leases.

Sources

• Reuters / Star Advertiser
• U.S. Bankruptcy Court for the Southern District of New York (Case No. 25-11897)