Spirit Airlines has secured a $475 million cash infusion from existing bondholders as part of its ongoing Chapter 11 restructuring process. The financing arrangement, approved by the U.S. Bankruptcy Court for the Southern District of New York, represents a significant milestone in the carrier’s efforts to stabilize its finances and restructure operations following months of financial turbulence.
The newly approved funds will be distributed in three tranches, with the first $200 million available immediately, ensuring Spirit maintains operational continuity while implementing its restructuring plan. This move is designed to provide the airline with liquidity to cover expenses, support employees, and sustain regular flight operations during bankruptcy proceedings.
In addition to the financial injection, Spirit has reached a three-way agreement with Airbus and aircraft lessor AerCap to reshape its fleet strategy. Under the new arrangement, the airline will cancel an order for 52 Airbus A320 series planes, along with purchase options for 10 additional aircraft. This decision marks a shift toward reducing future financial commitments while focusing on optimizing the fleet for more sustainable operations.
The agreement also resolves previous disputes between Spirit and AerCap, which had declared the airline in default of a lease agreement covering 36 undelivered Airbus planes, triggering termination fees of more than $75 million. Under the court-approved deal, Spirit will forfeit rights to those 36 aircraft but will enter new lease agreements for 30 planes scheduled for delivery between 2027 and 2029.
As part of the restructuring, Spirit will return 27 AerCap-owned planes from its current fleet, further downsizing its operations to improve financial health. In return, AerCap will pay Spirit $150 million while maintaining the right to file an unsecured claim of $572 million against the airline.
Spirit’s CEO Dave Davis described the agreement as “a significant milestone in our restructuring,” noting that the deal “represents continued progress toward securing a successful future for Spirit.”
The carrier is also pursuing a broader fleet reduction plan. According to recent court filings, Spirit intends to return 87 leased aircraft, leaving it with around 148 active planes and 47 parked. This downsizing aims to streamline operations, reduce costs, and position the company for recovery once the restructuring is complete.
We previously reported on Spirit Airlines’ decision to furlough hundreds of flight attendants, a move that reflected the airline’s efforts to manage costs amid financial uncertainty. The new financing agreement, combined with strategic fleet adjustments, indicates that Spirit is taking decisive steps toward stability after months of turbulence.
While challenges remain, Spirit’s restructuring plan shows clear intent to restore confidence among passengers, creditors, and investors. With fresh financing and a leaner fleet strategy, the low-cost carrier hopes to navigate its current crisis and rebuild for a more sustainable future in the U.S. aviation market.