Spirit Airlines Secures $475 Million Financing to Support Bankruptcy Restructuring

Spirit Airlines has secured up to $475 million in new financing from existing bondholders to keep operations running smoothly while it undergoes Chapter 11 bankruptcy proceedings, the carrier’s parent company announced Tuesday Sep. 30.

The funding package includes $200 million in debtor-in-possession financing that will become available immediately following court approval. Spirit also noted that it has secured interim access to $120 million in liquidity, providing a short-term cash cushion. A bankruptcy court hearing is scheduled for October 10 to review the financing plan.

The move comes after Spirit filed for bankruptcy protection in August 2025—its second such filing in less than a year—after a prior reorganization failed to stabilize its financial position. The airline, known as a pioneer of the U.S. ultra-low-cost carrier model, continues to grapple with high operating costs, competitive pressure, and a challenging debt load.

As part of its restructuring, Spirit announced a settlement with aircraft lessor AerCap Holdings, agreeing to reject leases on 27 aircraft. In exchange, AerCap will pay Spirit $150 million. The settlement also resolves a dispute over 36 Airbus jets that had been slated for delivery between 2027 and 2028, removing a major point of contention in Spirit’s fleet planning.

In a separate development, Spirit obtained court approval to reject 12 airport leases and 19 ground-handling agreements, steps aimed at streamlining operations and lowering fixed costs during the restructuring process.

The financing deal and lease rejections mark significant milestones in Spirit’s latest restructuring effort, giving the airline a financial lifeline as it works to restore stability. The outcome of its Chapter 11 process will likely determine whether Spirit can chart a sustainable path forward in an increasingly competitive U.S. airline market.


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Sources: AirGuide Business airguide.info, bing.com, reuters.com