Spirit Airlines provides update on restructuring process

Spirit Airlines announced (30-Sep-2025) the following update to its restructuring process:

• The LCC has negotiated a multi-tranche debtor-in-possession (DIP) financing facility of up to USD475 million from its existing bondholders that will provide Spirit with additional financial flexibility to support normal business operations during its restructuring. The DIP financing is subject to court approval, with a hearing scheduled for 10-Oct-2025. Spirit said USD200 million is expected to be available immediately upon court approval;
• As part of its motion for the use of cash collateral, the LCC obtained immediate interim access to USD120 million of liquidity;
• Spirit confirmed it negotiated an agreement with AerCap Holdings, its largest aircraft lessor. AerCap will pay Spirit USD150 million and Spirit will reject leases on 27 aircraft, allowing the LCC to reduce operating costs by "hundreds of millions of dollars". The proposed agreement also resolves all claims and disputes between AerCap and Spirit and provides for the future delivery of 30 aircraft. The agreement is subject to court approval;
• The court approved Spirit's motion to reject 12 airport leases and 19 ground handling agreements;
• "Active discussions" with key stakeholders continue. The LCC expects to announce agreements with additional lessors, including new liquidity and further fleet rationalisation, as a part of the rightsizing of the business that will generate "significant" cost savings;
• Spirit also has engaged with its principal labour unions to identify cost savings within the respective collective bargaining agreements. [more - original PR]