Spirit Airlines Announces Significant Progress in Restructuring with Key Agreements
Spirit Aviation Holdings, the parent company of Spirit Airlines, reported significant progress in its Chapter 11 restructuring process. During a hearing at the U.S. Bankruptcy Court for the Southern District of New York, the airline announced it has negotiated up to $475 million in debtor-in-possession (DIP) financing with its current bondholders.
Of the total amount, $200 million will be available immediately upon court approval at the hearing scheduled for October 10, 2025. Furthermore, Spirit has already obtained provisional access to $120 million in liquidity through the use of cash collateral.
Agreement with its Largest Aircraft Lessor
One of the most significant moves is the agreement reached with AerCap Ireland Limited, its largest aircraft lessor. The agreement includes a payment of $150 million to Spirit, the return of 27 aircraft, and the future delivery of 30 new units.
With this measure, the company aims to accelerate its fleet optimization strategy and reduce operational costs by hundreds of millions of dollars. The agreement also ends all legal disputes between the two parties and will be submitted for judicial review at the same October hearing.
→ Spirit Airlines to Furlough One-Third of Its Flight Attendants
Network and Airport Contract Adjustments
The court also approved Spirit’s request to reject 12 airport lease agreements and 19 ground service agreements, in line with the network rationalization announced weeks ago. These steps are part of the strategy to right-size the operation and improve the cost structure.
Ongoing Negotiations and Union Dialogue
The company maintains active discussions with other lessors, aiming to reach more agreements that provide liquidity and allow for the continuation of fleet reduction. In parallel, management is also working with the main unions to identify savings within the collective bargaining agreements.
Dave Davis, Chairman and Chief Executive Officer of Spirit Airlines, emphasized that these measures represent “significant progress in a short period of time” and highlighted the support received from the various stakeholders involved in the process.
“We remain focused on providing a safe and reliable operation. I am incredibly proud of our team members for continuing to step up and take care of our passengers,” Davis stated.
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