Four executives at the struggling Spirit Airlines have been paid bonuses of over $1 million to stick around as it undergoes bankruptcy proceedings for the second time in less than a year.
The airline disclosed the agreements in a filing with the Securities and Exchange Commission on Friday, the same day it filed for bankruptcy.
Spirit first filed for Chapter 11 bankruptcy in November 2024, exiting that process in March. However, on Friday, it filed for Chapter 11 again, the second time in 10 months.
Dave Davis, who took over as CEO in April, got $2.9 million for agreeing to stay with the airline in its second restructuring.
The retention award would need to be paid back if he leaves the company within a year, or within 90 days of Spirit exiting the bankruptcy process.
Frederick Cromer, the chief financial officer, was paid just shy of $1.2 million, while Thomas Canfield, general counsel and executive vice president, and Chief Operating Officer John Bendoraitis got around $1.1 million.
It is not uncommon for companies to pay bonuses just before filing for bankruptcy protection, because Chapter 11 rules restrict such payments.
Since filing for bankruptcy, Spirit’s share price has fallen 45% to $0.66 in after-hours trading.
The latest Department of Transportation statistics, from June, say that the airline has just over 10,000 employees.
Some flight attendants could be paid less than $30,000 a year, around 1% of the CEO’s bonus.
That’s based on hourly pay starting at $22.51 for cabin crew in their first six months on the job, and a monthly minimum guarantee of 72 hours of work, per their union contract.
Flight attendants earn more based on each year of service, rising to $60.44 an hour in their 13th year. There are also bonuses for speaking another language and time spent away from their home base.
Spirit Airlines did not immediately respond to a request for comment.
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