Legal analysts are advising that the most beneficial outcome for Spirit Airlines may lie in the auction of its assets, rather than succumbing to the myriad crowdfunding initiatives. This comes in the wake of the airline’s recent cessation of operations following a bankruptcy filing due to overwhelming debts amounting to $8.1 billion, alongside surging fuel costs.
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The airline’s abrupt halt was announced on May 2, prompting TikTok influencer Hunter Peterson to propose an ambitious restructuring plan aimed at resurrecting the budget airline via crowdfunding. In a video that quickly went viral, Peterson suggested that Spirit Airlines could be nationalised, transforming the airline into a community-owned entity. To facilitate this initiative, he launched a website—letsbuyspiritair.com—inviting individuals to “pledge” investments toward the venture.
At present, the crowdfunding campaign has reportedly amassed pledges totalling $337 million, although this figure pales in comparison to the group’s target of $1.75 billion. The proposal echoes the operating model of the Green Bay Packers, an NFL team owned by its supporters, allowing each member one vote regardless of their investment size while profits would be distributed proportionally.
Despite the enthusiastic response, analysts express scepticism regarding the viability of this crowdfunding scheme, pointing out that the airline has faced severe financial challenges. Following the onset of the COVID-19 pandemic, Spirit Airlines incurred losses exceeding $2.5 billion. The airline’s attempts to merge with Frontier Airlines in 2022 and JetBlue in 2024 ultimately fell through, further complicating its financial state.
In November 2024, Spirit filed for bankruptcy, suffering a second time in August 2025. The airline’s situation has been exacerbated by what it termed “recent geopolitical events,” which have led to a significant spike in fuel prices. In court documents released shortly after the bankruptcy announcement, the airline highlighted these rising operational costs as a key issue.
Andrew Stoltmann, a securities attorney and adjunct law professor, noted that the current economic landscape does not bode well for the resurrection of Spirit Airlines. He stressed that the stark reality is unlikely to favour crowdfunding ventures, suggesting instead that the bankruptcy court judge may favour the auctioning of Spirit’s assets as the most profitable resolution.
Stoltmann further explained that bondholders, who own the substantial debt, are likely to resist any plan that falls short of maximising profits. He predicts that competitive airlines will eagerly exploit this opportunity to acquire Spirit’s valuable assets, such as its fleet of aircraft, which he referred to as the “crown jewel” of the airline.
Though the idea of community ownership may garner public backing, Stoltmann warns that the harsh realities of bankruptcy proceedings could quash such aspirations quickly. Should Spirit Airlines exit the market permanently, he cautions that budget passengers would likely face increased fares across the board, as the absence of a low-cost carrier would diminish competition.
This situation casts a shadow over the hopes of those who have pledged financial support for revitalising Spirit Airlines. As the legal and financial implications unfold, it remains uncertain whether the crowdfunding movement can shift the dynamics of the airline industry or if it will simply become a nostalgic endeavour unfulfilled in the face of mounting fiscal challenges.
As the story continues to evolve, the outcome of Spirit Airlines’ fate remains in the balance, with possible implications not just for its former operations but also for the wider travel market and the millions who rely on affordable air travel options.