Spirit Airlines CEO Ted Christie quits — just months before he was due to get $3.8M bonus

Spirit Airlines receive a $3.8 million retention bonus.

The transition comes as the Florida-based low-cost carrier continues to grapple with financial woes, ongoing restructuring efforts and a recent Chapter 11 bankruptcy filing.

On March 12, Spirit Airlines put out a statement indicating that it had emerged from Chapter 11 proceedings by reducing approximately $795 million in debt through a consensual deleveraging plan.

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The company also secured a $350 million equity investment from existing investors to support future growth and enhance customer experiences.

“Spirit will continue to be led by Ted Christie, President and Chief Executive Officer, and its existing executive team,” the company said in a statement. It is unclear what prompted the airline to reverse course in such a short period of time.

Just a week prior to the bankruptcy filing in November, Christie reportedly received a $3.8 million retention bonus — money he was entitled to keep if he remained with the firm for another year.

But his ouster likely means that he won’t see any of that bonus money.

A Spirit Airlines spokesperson declined to comment.

The company has not yet named a permanent successor but has installed an interim Office of the President whose members will jointly run the airline before a new CEO is named.

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That team will include Fred Cromer, executive vice president and chief financial officer; John Bendoraitis, executive vice President and chief operating officer; and Thomas Canfield, senior vice president and general counsel.

“On behalf of the Board and the Spirit team, I thank Ted for his tireless efforts over the course of his 13 years at the Company,” said Robert Milton, chairman of Spirit Airlines.

“He has seen a lot and done a lot during his tenure here, including navigating the Company through the COVID crisis and multiple strategic junctures, as well as most recently, a corporate restructuring. Ted has kept the company together through challenging times, and for this we wish him all the best going forward.”

The leadership overhaul didn’t stop there.

Matt Klein, executive vice president and chief commercial officer, is also stepping down.

He will be succeeded by Rana Ghosh, who has been with the company since 2015 and most recently served as chief transformation officer.

His new appointment as chief commercial officer is effective immediately.

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In November 2024, Spirit Airlines filed for Chapter 11 bankruptcy protection due to the airline’s significant financial challenges — including losses exceeding $2.5 billion since 2020 and its more than $1 billion in debt obligations.

Additionally, the airline has also had to grapple with increased operating expenses and heightened competition from larger carriers. Its failed merger attempts with Frontier Airlines and JetBlue Airways contributed to its financial instability.

The airline, known for its ultra-low-cost model, has been under pressure as consumer demand has shifted toward full-service carriers.

Spirit’s once-successful strategy of flying longer hours and squeezing more seats into aircraft helped produce strong margins for years but proved less effective post-pandemic.

Utilization rates have dropped 16% compared to 2019, while inflation and changing traveler behavior have further eroded its customer base.

Compounding its challenges, Spirit saw a planned $3.8 billion merger with JetBlue Airways blocked in court.

Merger talks with Frontier Airlines also collapsed.

The failed deals and ongoing market pressures have left the once-rising budget airline fighting for survival as it navigates bankruptcy protection and rebuilds its leadership team.