Spirit Aviation Holdings, the parent company of Spirit Airlines, announced significant progress in its Chapter 11 restructuring process, aiming to strengthen the airline’s financial stability and future operations. The company obtained up to $475 million in debtor-in-possession (DIP) financing from existing bondholders to support regular operations during its restructuring, with $200 million accessible immediately after court approval. Spirit also gained interim access to $120 million in liquidity.
In a separate agreement, aircraft lessor AerCap Ireland Limited will pay Spirit $150 million as part of a fleet optimization strategy that includes the rejection of 27 aircraft leases, resulting in substantial reductions in operating costs. The agreement also resolves all disputes between the two companies and includes the future delivery of 30 aircraft.
The U.S. Bankruptcy Court has approved Spirit’s motion to reject 12 airport leases and 19 ground handling agreements, helping streamline operations and lower costs. The company continues discussions with other lessors and labor unions to identify additional cost savings and liquidity measures. “These are significant steps forward in a short period of time to build a stronger Spirit and secure a future with high-value travel options for American consumers,” said Dave Davis, President and Chief Executive Officer.
