Custodian Update
Fellow Spirit ALPA Pilots,
As the bankruptcy and wind-down process continues, there remain several important developments that directly impact our pilot group. Although Spirit Airlines has ceased operations, the work of protecting pilot interests is far from over. Your Custodian Team continues to monitor court proceedings, coordinate with ALPA legal and professional staff, and advocate for the contractual and statutory rights of Spirit pilots. Additionally, ALPA launched a campaign urging bondholders to do the right thing: pay the people who kept Spirit flying to the end. Read our public message to the bondholders at payspiritpilots.com. The easiest way to amplify the message is by sharing our posts on Instagram, Facebook, LinkedIn, and X.
June 10 Omnibus Hearing
At a hearing that took up much of the day on Wednesday, the Bankruptcy Court considered several matters in Spirit’s case.
Three items are noteworthy. First, the court considered Spirit's motion to approve an incentive pay plan for three remaining top executives and two board members based on amounts realized in the sale of the airline’s assets. These programs were negotiated with the bondholders and lenders under the revolving credit facility whose collateral will be sold.
ALPA, joined by Spirit’s other unions, objected to the plan noting the gross injustice of leaving pilots who worked through the shutdown high and dry without the accrued benefits (Sick and Vacation) owed under the contract. In our filed objection, we asked the court to deny the motion to approve the plan unless and until pilots are paid. We also focused on the possibility that management could be rewarded were Spirit to achieve savings by failing to pay pilots and other employees benefits they are owed.
In discussions on the record with Judge Lane on this issue, Spirit confirmed that no bonus would be paid based on cost savings at the expense of Spirit employees. The court stated that it was inclined to approve the payment, noting that it was incentive-based as the extra pay would be available only if sales targets were met. On June 12, the court approved the motion in an oral ruling, and an order will be entered later.
The court also approved a procedure for filing claims based on work performed after the airline filed for bankruptcy on August 29 up to the shutdown and separately thereafter. Under the procedure that was approved, the airline has filed a schedule of what it believes people are owed through the shutdown. We will review the filing and expect to submit a claim for amounts due under the collective bargaining agreement and under federal and state WARN laws.
Individual pilots with other claims (for example, workers’ compensation or employment discrimination claims) should contact their personal legal representative to take necessary steps to protect those claims. That much being said, it is quite possible that there will be no money available to pay anything on these claims.
The court also approved a bidding process for the sale of Spirit’s remaining assets. These will be sold in three lots: the Dania HQ campus, the LGA slots, and everything else.
The Port Authority of NYNJ filed an opposition to the sale procedures motion contending that the LGA slots could not be sold. The court did not address this issue, and it is noteworthy that neither FAA nor DOT raised that issue. After an auction is conducted for these assets, the court will consider whether to approve the sales in hearings on July 22 and August 4 (for the HQ).
NCC Timeline
All pilots should have received their final paycheck from Spirit Airlines on May 29, 2026. At this time there is nobody left at the Company to rectify any outstanding issues. Any discrepancies or disputes will now have to be handled via the NCC, Grievance, and ultimately the Administrative Claim process in the bankruptcy court.
The deadlines to submit NCCs associated with the May 22, 2026, and May 29, 2026, paychecks are June 21, 2026, and June 28, 2026, respectively. NCCs may be filed via spa.alpa.org.
Administrative Bar Claim Date
Spirit filed a motion to approve procedures for submission of claims for administrative expenses. These are monies that became owing after Spirit filed for bankruptcy, such as vacation that accrued during the bankruptcy period. On June 1, Spirit filed a schedule of creditors they believe have administrative expense claims that arose before the wind-down began on May 2. They did not list any individual pilots (or any individual person) or ALPA on their schedule. Their motion seeks a deadline of July 17 for any person who disagrees with their schedule to file an administrative claim, and gives Spirit authority to settle or litigate those claims as they deem appropriate. A group of former employees who have filed a WARN Act claim objected to Spirit’s procedures motion, but Judge Lane overruled their objection, and we expect him to enter an order approving the motion soon. ALPA intends to file a claim for administrative expenses on behalf of Spirit pilots.
Charles Schwab 401(k) Webinar
Charles Schwab is hosting a Spirit Employee 401(k) webinar on June 18, 2026, to offer direct support and answer questions about the Spirit 401(k) plan termination. The webinar will be hosted twice that day, at 11 a.m. and 2 p.m. ET. Each session will be recorded and later posted online for viewing. You are invited to attend either or both live sessions; please note these sessions will be recorded and accessible to the public.
Additionally, the information provided by Schwab is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.
Please click here to see a summary of the discussion topics for the webinar and to register for the event.
Charles Schwab Webinar
Thursday, June 18, 2026
11 a.m. ET and 2 p.m. ET
Upcoming Offer to Return Dues: Watch Your Email
ALPA’s Executive Council has authorized an offer to return dues for the third consecutive year. This year’s offer totals $53 million, and all ALPA pilots who were dues obligated in 2025 are eligible—whether they are in Active member status or not.
Eligible pilots will receive an email from DuesReturn@alpa.org with instructions on preparing to receive your dues return offer. You will need to provide direct deposit information for an electronic funds transfer or confirm your mailing address for a paper check.
You can also visit the dues return page on the ALPA website or type alpa.org/duesreturn into your browser to access the information directly instead of via a link. It is extremely important for all pilots to take the steps outlined to ensure you can receive and accept your offer.
2025 Offer to Return Dues
There were over 40 Spirit Pilots who did not receive ALPA’s offer to return dues last year. Next week, the Custodian Team will be reaching out to this group to facilitate the completion of last year's offer to return dues. If you didn’t receive last year’s offer, please be on the lookout for an email from one of the Custodians.
As we conclude this update, it is fitting to recognize that June 12 marks the 16th anniversary of the 2010 Spirit pilot strike. That moment in our history demonstrated the courage, sacrifice, and unity of a pilot group determined to stand together in defense of its profession. While Spirit Airlines is no longer flying, the Spirit pilot group endures. Today, our pilots are spread across airlines, corporate flight departments, military units, charter operators, and countless other opportunities, yet we remain connected by the experiences we shared and the challenges we overcame together. The same solidarity that carried us through the strike, contract battles, furloughs, bankruptcy, and ultimately the closure of our airline remains part of who we are. As many of our fellow pilots continue to navigate career transitions and uncertainty, we encourage each of you to continue reaching out, sharing opportunities, offering support, and helping one another whenever possible. We may no longer share a seniority list in practice, but we will always share the bond of being Spirit pilots.
In Unity,