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Bankruptcy court approves lifeline financing
A Spirit Airlines flight arrives at Arnold Palmer Regional Airport in Westmoreland County, Pennsylvania, U.S., September 18, 2025.
Quinn Glabicki | Reuters
Spirit Airlines won approval for a $475 million lifeline and a $150 million payment from its biggest aircraft lessor in court on Friday, as the struggling budget airline races to stabilize itself after its second bankruptcy since November.
U.S. Bankruptcy Court for the Southern District of New York approved the $475 million in debtor-in-possession financing, a lifeline that bankrupt companies can use to continue operating, along with $150 million from AerCap and the rejection of 27 airplane leases. Spirit said on Friday that $200 million would be immediately available for the carrier.
Spirit has been cutting dozens of routes, announced plans to slash its fleet, and last month said it would furlough about one third of its flight attendants to cut costs. The airline is in talks with its pilots’ union and is seeking about $100 million in cuts from that group.
“We are pleased to have reached another significant milestone in our restructuring, which represents continued progress toward securing a successful future for Spirit,” Spirit CEO Dave Davis said in a news release Friday.
Spirit’s problems piled up in recent years: An engine recall, a failed acquisition by JetBlue, a jump in labor and other costs, and a shift in consumer tastes for more upmarket offerings.
Spirit has spent more than a year trying to offer travelers roomier seats and other fare packages beyond the cheap tickets and a la carte add-ons like seat selection and cabin baggage that it’s been known for for years.
