Honestly, if you’ve been following the airline industry lately, the news that Spirit Airlines CEO Ted Christie resigns probably felt like the final act in a very long, very stressful drama. It wasn’t just a simple "stepping down to spend more time with family" kind of deal. This was a seismic shift for the carrier that basically invented the "bare fare" model in the U.S.
He's out.
The announcement hit the wires on April 7, 2025, just a few weeks after Spirit supposedly "emerged" from its first big bankruptcy battle. But as we sit here in early 2026, looking back at the wreckage, it’s clear that Christie’s departure was the beginning of a much larger tailspin.
The Breaking Point: Why Ted Christie Walked Away
Ted Christie didn't just leave; he vanished from the C-suite at a moment when the airline was trying to convince the world it had a future. He had been with the company since 2012, taking the big seat in 2019. Think about that timing. He took over right before a global pandemic grounded every plane on earth.
Talk about bad luck.
But the real kicker wasn't just COVID. It was the failed JetBlue merger. Christie bet the entire farm on that deal. When a federal judge blocked it on antitrust grounds, Spirit was left holding a mountain of debt with no life raft. By the time he resigned, the airline was trying to pivot away from its "no-frills" identity toward a "premium" model.
Basically, they wanted to be Delta, but with yellow planes and a lot less cash.
The $4 Million Question
There’s a bit of drama here that most people missed. Christie’s exit happened just months before he would have qualified for a massive $3.8 million retention bonus.
Why leave that money on the table?
Insiders at the time hinted that the board wasn't exactly thrilled with the trajectory. If you're a CEO and your "successful" bankruptcy exit leads right into another financial crisis, your seat gets hot fast. By the time January 2026 rolled around, Spirit was back in Chapter 11 for the second time in 14 months.
Who Is Running Spirit Airlines Now?
When Christie left, they didn't have a replacement ready. They formed an "Office of the President"—which is corporate-speak for "we're panicking and need three people to do one job." That team included:
- Fred Cromer (CFO)
- John Bendoraitis (COO)
- Thomas Canfield (General Counsel)
Eventually, they brought in Dave Davis, a veteran from Sun Country and Northwest, to try and steer the ship. But let’s be real: Davis inherited a house on fire.
The airline has slashed its fleet significantly. At the start of 2024, they had over 200 planes. By the time we hit 2026, that number dropped to around 114. They’ve been selling off Airbuses just to keep the lights on and pay the pilots.
What This Means for Your Next Flight
If you have Spirit points or a flight booked, you’re probably sweating. It’s understandable. Here is the actual state of play for 2026:
1. Flights are still moving. For now. Under Chapter 11, the court forces the airline to keep operating so they can pay back creditors. If they stop flying, they stop making money, and the creditors get nothing.
2. The "Premium" shift is a mess. Christie’s big parting plan was to add "Big Front Seats" and better service. But transforming a budget brand into a premium one is like trying to turn a Taco Bell into a five-star steakhouse. It takes money Spirit doesn't have.
3. The Frontier Ghost. Rumors are constantly swirling that Frontier might come back to the table to buy what’s left of Spirit. It’s the "merger of the desperate."
The Survival Odds
Most analysts look at Spirit right now and see a 30% chance of total liquidation. That would be a "Chapter 7" scenario where the planes stay on the ground and your tickets become worth less than the paper they aren't printed on. The more likely outcome is a massive downsizing. You’ll see fewer flights to smaller cities and higher prices on the routes that remain.
Is the Budget Airline Era Over?
When Spirit Airlines CEO Ted Christie resigned, it signaled the end of the "rock-bottom" era. The model of $20 tickets and $60 bag fees is broken. Fuel costs are up, labor is expensive, and the big carriers like United and American have gotten really good at competing with "Basic Economy" seats.
Spirit just couldn't find a way to make the math work anymore.
If you’re holding Free Spirit points, the best advice is to use them. Now. Don't wait for the "perfect" vacation in late 2026. In a bankruptcy, loyalty programs are often the first thing to get devalued or wiped out entirely.
The lesson of the Ted Christie era is pretty simple: Being the cheapest isn't enough if you can't pay your bills. As the airline tries to reinvent itself under Dave Davis, the yellow planes you see at the airport today might look very different—or be gone entirely—by this time next year.
To protect yourself as a traveler, you should:
- Book with a credit card that offers robust travel insurance and chargeback protection.
- Monitor Spirit's "Proof of Claim" deadlines if you are owed money for canceled flights (the next big one is January 27, 2026).
- Expect schedule changes; the airline is constantly "optimizing" (cutting) routes to save cash.
Keep your eyes on the bondholders. If firms like Citadel stop the funding, the music finally stops for Spirit.