Spirit Airlines Receives $100 Million Emergency Funding During Bankruptcy Process
Spirit Airlines secured new financial backing of $100 million to support its operations and advance its restructuring while remaining under bankruptcy protection in the United States, against a backdrop of uncertainty about the future of the ultra-low-cost carrier.
Key Support Amid Uncertainty
The company reported on Monday that the additional funding was structured to strengthen its liquidity during the reorganization process. The news comes after the media outlet The Air Current reported on Friday that executives from rival airlines considered a potential abrupt operational shutdown around December 13 possible, should certain conditions linked to the new funds not be met.
The company has repeatedly rejected these reports. The airline insisted that flights are operating normally and that the operational situation continues under a “business as usual” scheme.
How the Funding Was Structured
The agreement was finalized through an amendment to the debtor-in-possession (DIP) credit facility, a common mechanism that allows companies to continue operating during Chapter 11 bankruptcy proceedings.
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Under the revised terms, the company will receive $50 million immediately to cover day-to-day expenses. The remainder of the amount will become available once it advances with plans to reorganize as an independent airline or explore a potential sale.
Unchanged Operations and Message to the Market
Management indicated that this liquidity boost reflects progress in its recovery plan. Flight schedules, ticket sales, and daily activities have not been affected, according to the official statement.
CEO Dave Davis emphasized that the company continues to offer high-value travel options for U.S. consumers and expressed his expectation of welcoming passengers during the holiday season and in the months ahead.
Background of the Bankruptcy Process
The parent company filed for bankruptcy in August for the second time, after facing a sharp decline in its cash reserves and mounting losses.
Since then, a broad cost-reduction plan has been implemented, including staff cuts, route adjustments, exiting 14 airports, and rejecting lease agreements for more than 80 aircraft.
Operational Adjustments and Labor Agreements
In recent months, the airline has also relocated its fleet and simplified its cost structure as part of the stabilization strategy. Last week, pilots and flight attendants approved new labor agreements aimed at supporting the airline operator’s long-term recovery.
With this new funding, Spirit Airlines seeks to buy time and gain maneuvering room while defining its future in a competitive and financially demanding environment.
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