Spirit Airlines has secured a multi-tranche debtor-in-possession (DIP) financing facility of up to $475 million, the airline said on September 30, 2025.
The financing was secured from its existing bondholders. Spirit said this will provide the airline with “additional financial flexibility to support normal business operations during its restructuring”.
The DIP financing still requires court approval, with a hearing set for October 10. Upon approval, $200 million is expected to be immediately available.
In the interim, Spirit was approved to gain immediate access to $120 million of liquidity.
As previously reported, the airline reached an agreement with its largest lessor, AerCap, under which the lessor will pay the airline $150 million.
While court documents had previously revealed that Spirit had rejected a certain number of leases with AerCap, the airline has now confirmed the total to be 27 aircraft.
“Spirit will reject leases on 27 aircraft, allowing the company to reduce operating costs by hundreds of millions of dollars,” Spirit said in a statement on Tuesday (September 30).
According to a TD Cowen analyst report published on September 25, Spirit has 37 aircraft leased from AerCap, with 25 active and 12 in storage.
Spirit said: “The proposed agreement also resolves all claims and disputes between AerCap and Spirit and provides for the future delivery of 30 aircraft.”
Bankruptcy court documents from September 23 said sale and leaseback agreements between AerCap and Spirit for 36 undelivered Airbus A320neo family aircraft, which were scheduled to be delivered between 2027 and 2028, have been terminated.
The lessor will retain full rights to the aircraft, allowing them to be re-leased at potentially higher rates.
The court also approved Spirit's motion to reject 12 leases and 19 ground handling agreements.
"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 Spirit president and CEO Dave Davis.
“While there's more work to be done, we're grateful to our stakeholders who have stepped up to support us during the restructuring.”
Spirit said discussions with its key stakeholders are ongoing.
“The company expects to announce agreements with additional lessors, including new liquidity and further fleet rationalisation, as a part of the rightsizing of the business that will generate significant cost savings," the airline said.
Spirit filed for Chapter 11 bankruptcy in late August 2025 — only a few months after it emerged from restructuring in March the same year.
The airline had struggled to contend with its liquidity pressures and its premium rebrand unable to capture demand during a period of economic uncertainty.
The airline said it expects to “double down” on redesigning its network through the restructuring, focusing on key networks and cities, as well as reducing capacity in certain markets.
It will also optimising its fleet, which will “significantly lower” its debt and lease obligations, and it will pursue further cost efficiencies across its business and expand further on its premium offerings.