Spirit Airlines Secures $300M Chapter 11 Exit Financing

Spirit Airlines has reached an agreement with prepetition debtholders for up to $300 million in financing to support its emergence from Chapter 11 bankruptcy. The funding, detailed in a January 16, 2025, SEC filing, includes a $275 million senior secured revolving credit facility and an optional $25 million incremental facility, contingent on undisclosed conditions being met.

As part of its restructuring, Spirit will cut approximately 200 non-unionized positions, mainly in management and administrative roles. This aligns with the airline’s efforts to streamline operations amid reduced fleet size and flight capacity. CEO Ted Christie explained in an internal memo, “We need to run a smaller airline and get back on better financial footing.”

The airline has recently retired its last Airbus A319-100 and secured court approval to sell 23 aircraft, a mix of A320-200s and A321-200s, generating $520 million. These moves aim to strengthen Spirit’s financial position and optimize its fleet and workforce.

Spirit, which filed for Chapter 11 in November 2024, employed over 11,650 staff as of that month. The restructuring follows a failed merger attempt with JetBlue Airways and ongoing efforts to address financial challenges.

The airline is expected to emerge from Chapter 11 later this quarter, backed by the new financing and a leaner operational structure.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com