Spirit Airlines Announces Leadership Transition

Spirit Aviation Holdings, Inc., the parent company of Spirit Airlines, today announced key changes in its senior leadership team.

Ted Christie, President and Chief Executive Officer, has stepped down from his role and from the company’s Board of Directors, effective immediately. The Spirit Board is currently in the process of appointing a permanent successor.

Until a new CEO is named, Spirit will be led by an interim Office of the President composed of:
- Fred Cromer, Executive Vice President and Chief Financial Officer
- John Bendoraitis, Executive Vice President and Chief Operating Officer
- Thomas Canfield, Senior Vice President and General Counsel

Robert Milton, Chairman of Spirit Airlines, expressed appreciation for Christie’s 13 years of service, highlighting his leadership through the pandemic, strategic challenges, and recent corporate restructuring.

Additionally, Matt Klein, Executive Vice President and Chief Commercial Officer, has also stepped down. He is succeeded by Rana Ghosh, who has been with the company since 2015 and most recently served as Senior Vice President and Chief Transformation Officer.

Milton extended thanks to Klein for his contributions and welcomed Ghosh to his new role.

Spirit AeroSystems Holdings, Inc. reported its fourth-quarter and full-year 2024 financial results, highlighting several key metrics. The company posted revenues of $1.7 billion for the quarter, with a net loss per share of $(5.38) and an adjusted net loss per share of $(4.22). Free cash flow for the quarter was $91 million.

CEO Pat Shanahan noted progress toward the anticipated Boeing acquisition, expected to close in mid-2025, while CFO Irene Esteves emphasized improved deliveries, including a doubling of Boeing 737 deliveries compared to the prior quarter.

Despite this progress, the company cited financial challenges, including increased costs and lower-than-expected 737 production rates, leading to a significant operating loss. Spirit secured financial agreements with Boeing and Airbus, receiving advance payments of $200 million and $70 million, respectively, to support liquidity. However, management acknowledged substantial doubt about the company’s ability to continue as a going concern without further financial support or restructuring.

The pending merger with Boeing remains under regulatory review, with approval processes still ongoing. In addition, Spirit is taking steps to improve liquidity, including potential asset divestitures and operational restructuring.

Spirit's backlog at the end of 2024 stood at approximately $47 billion, reflecting its role in major Boeing and Airbus programs. The company's financial struggles continue to pose challenges despite operational improvements.

Spirit AeroSystems stockholders approved the merger with Boeing at a special meeting. The merger agreement, executive compensation related to the merger, and a potential meeting adjournment if needed were all approved. The merger is expected to close in mid-2025, pending regulatory approvals and the divestiture of certain Airbus-related business operations. The company acknowledged risks such as regulatory delays, financial impacts, and supply chain challenges.

Spirit AeroSystems Holdings, Inc. announced amendments to its agreements with The Boeing Company to address repayment schedules for outstanding advances.

Under the January 22, 2025 amendments:
1. The April 2024 Memorandum of Agreement was modified to outline a repayment schedule for $425 million of advances, with installments ranging from $50 million to $75 million, due monthly from April 1, 2026, to September 1, 2026. If the Merger Agreement between Spirit, Boeing, and Sphere Acquisition Corp. is terminated, the outstanding advances will be due in full on April 1, 2026.

2. The April 2023 Memorandum of Agreement was amended to detail a repayment schedule for $180 million of advances, with $45 million due quarterly between October 1, 2026, and December 1, 2027. Similarly, in the event of the Merger Agreement's termination, all outstanding advances will be due on April 1, 2026.

These amendments reflect updated financial commitments and provisions in the context of the merger and production agreements between the two companies.