This article summarizes reporting by Reuters and details from U.S. Bankruptcy Court filings.

Spirit Airlines Transfers Chicago O’Hare Gates to American Airlines for $30 Million

Spirit Airlines has received judicial approval to transfer two preferential-use gates at Chicago O’Hare International Airports (ORD) to American Airlines. The transaction, valued at $30 million, was authorized on Monday, December 8, 2025, by Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York. This divestiture represents a significant step in Spirit’s ongoing restructuring efforts during its second Chapter 11 bankruptcy process in less than a year.

According to reporting by Reuters, the sale will see Spirit Aviation hand over control of the gates to the Fort Worth-based legacy carrier immediately. The funds generated from this asset sale are earmarked for prepayments on Spirit’s debtor-in-possession (DIP) financing, a critical liquidity lifeline that allows the Airlines to maintain operations while it reorganizes.

The deal highlights the diverging trajectories of the two carriers: American Airlines is moving to fortify its fortress hub in Chicago, while Spirit executes a “radical contraction” strategy to shrink its footprint into a financially viable size.

Transaction Details and Asset Allocation

Court filings associated with the bankruptcy proceedings outline the specific assets involved in the transfer. Spirit is relinquishing Gate G8 and Gate G10 located in Terminal 3 at O’Hare. The purchase price equates to approximately $15 million per gate.

Despite the sale, Spirit Airlines is not exiting the Chicago market entirely. The carrier will retain preferential use of two adjacent gates, G12 and G14, allowing it to continue operating a reduced schedule from the airport. This partial exit aligns with the airline’s broader Strategy of shedding assets in high-cost markets while maintaining a presence on its most profitable routes.

Financial Implications

The $30 million cash injection is vital for Spirit. Having filed for its second bankruptcy in August 2025, following a previous filing in November 2024, the airline is under immense pressure to reduce its cash burn. The proceeds will directly address the DIP financing obligations, reducing the interest burden and stabilizing the carrier’s immediate cash flow.

Strategic Context: The Battle for O’Hare

For American Airlines, the acquisition of Gates G8 and G10 is a strategic defensive maneuver rather than a simple expansion. Terminal 3 serves as American’s primary operational base at O’Hare, and securing these gates prevents competitors from encroaching on its territory.

Industry analysis suggests that American’s primary motivation is to check the growth of United Airlines. United, headquartered in Chicago, has aggressively expanded its gate count at O’Hare in recent years, often securing reallocated gates at the expense of American. By purchasing Spirit’s leasehold interest in Terminal 3, American ensures that these assets remain within its ecosystem. Notably, Gate G8 is situated adjacent to an American Airlines Admirals Club, enhancing its value for premium passenger operations.

AirPro News Analysis

We view this transaction as a clear indicator of the “cannibalization phase” of the post-pandemic aviation recovery. Legacy carriers with stronger balance sheets, such as American, are increasingly utilizing the financial distress of ultra-low-cost carriers (ULCCs) to reclaim infrastructure at constrained airports.

O’Hare is one of the most gate-constrained airports in the United States. If Spirit had simply rejected the leases without a buyer, the gates would have returned to the City of Chicago for reallocation, potentially opening the door for United or Delta to bid. American’s willingness to pay $30 million for two gates underscores the premium placed on hub dominance and the high barriers to entry at major international airports.

Background: Spirit’s “Double Bankruptcy”

To understand the necessity of this sale, it is essential to look at Spirit’s tumultuous timeline over the last 12 months. The airline is currently navigating a restructuring process that is markedly different from its previous attempt.

• First Bankruptcy (Nov 2024 – Mar 2025): Spirit filed for Chapter 11 following blocked merger attempts with Frontier and JetBlue. The carrier emerged in March with a plan focused on debt reduction but failed to stem operational losses.
• Second Bankruptcy (Aug 2025 – Present): Driven by continued liquidity crises, this filing involves aggressive downsizing. Spirit has already exited 14 airports and rejected leases for over 80 Commercial-Aircraft.

American Airlines formally signaled its interest in Spirit’s assets by filing a notice of appearance in the bankruptcy case on December 5, 2025, just days before the gate sale was approved.

Frequently Asked Questions

Is Spirit Airlines leaving Chicago O’Hare completely?
No. Spirit is selling two gates (G8 and G10) but retaining two others (G12 and G14). Passengers can expect a reduced schedule, but the airline will continue to serve the airport.

Why did American Airlines pay $30 million for these gates?
The purchase protects American’s hub status at O’Hare. The gates are located in Terminal 3, American’s home base, and acquiring them prevents competitors like United Airlines from gaining more ground in that terminal.

When was this deal approved?
The sale was approved by Judge Sean H. Lane on Monday, December 8, 2025.

Sources: Reuters