Spirit Airlines will receive a $150 million liquidity infusion from its largest lessor, AerCap, bankruptcy court documents revealed today (September 30).
As previously reported, the two parties had signed a tentative deal whereby AerCap would provide Spirit with a “significant” liquidity infusion. Spirit said the cash will allow it to continue operations while implementing its business plan and fleet rationalisation process.
AerCap will be allowed to file an unsecured claim in bankruptcy proceedings for more than $696 million.
Amid its Chapter 11 restructuring, Spirit agreed to reduce the number of its leased aircraft with the lessor.
Spirit operates an all-Airbus fleet, primarily consisting of the A320 family jet. Out of 214 of the airline’s operating fleet, 166 are leased aircraft. The filing did not detail the number of aircraft that will be reduced from the fleet.
“Spirit has 37 aircraft leased from AerCap, of which 25 are active and 12 are in storage,” said TD Cowen analysts Moshe Orenbuch and Burc Okumus in a report.
Additionally, sale and leaseback agreements 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.