Spirit Airlines Reels From Costs Quick-Fix Bankruptcy Missed (2)

On its first day in bankruptcy court last November, Spirit Airlines had a simple message for its employees, customers and creditors: Nothing would change for “99.9%” of them, as company lawyer Marshall Huebner put it.

The no-frills, discount carrier only filed its Chapter 11 so it could implement a deal with a small number of bondholders who had agreed to swap their debt for stock. That would slash Spirit’s interest bills without the long, expensive court fights — with unions, plane-lease companies, and others — seen when rival airlines went broke.

“And so I do want to stress at the ...