Spirit Airlines Reports Major Milestones in Its Restructuring Process

Spirit Airlines Moves Forward with Restructuring Plans

On September 30, 2025, Spirit Aviation Holdings, Inc., the parent company of Spirit Airlines, announced remarkable progress in its restructuring efforts during a hearing at the U.S. Bankruptcy Court for the Southern District of New York. The airline is navigating through a Chapter 11 process aimed at securing a more stable financial foundation and improving operational efficiency.

A key highlight of the announcement was the negotiation of a multi-tranche debtor-in-possession (DIP) financing facility worth up to $475 million from existing bondholders. This financial support is designed to aid Spirit during its restructuring phase and ensure normal business operations. The financing will be subject to court approval, with a related hearing set for October 10, 2025. An immediate availability of $200 million is anticipated upon receiving the court's nod.

Additionally, while seeking permission to utilize cash collateral, the company secured $120 million in immediate access to liquidity. This capital will provide vital resources as Spirit works to streamline its operations.

In a strategic move towards asset optimization, Spirit reached an agreement with AerCap Ireland Limited, its largest aircraft lessor. Under this amicable agreement, AerCap will grant Spirit $150 million, while Spirit will terminate leases on 27 aircraft. This will significantly cut operating costs, allowing the airline to redirect its resources more effectively. The deal is poised to resolve any claims and disputes between the two entities and plans for the future delivery of 30 new aircraft are also part of this agreement. This arrangement also awaits court approval, which will be deliberated at the upcoming hearing.

In parallel, Spirit has been adjusting its network and has gained court approval to reject leases on 12 airport properties as well as 19 ground handling contracts. These actions represent a crucial step in rationalizing costs and reshaping the airline's network to align better with market demands and operational realities.

Ongoing discussions with vital stakeholders suggest that Spirit is on track to finalize further agreements with additional lessors. The aim is to secure new sources of liquidity and refine the fleet, contributing to substantial cost savings moving forward.

The airline is also collaborating with its principal labor unions to identify cost-saving measures within collective bargaining agreements, showcasing a commitment to operational efficiency while safeguarding employee interests.

Dave Davis, President and CEO of Spirit Airlines, expressed confidence in the transformation efforts: “These are significant steps forward in a short period, and they help build a stronger Spirit while securing a future of high-value travel options for American consumers. Even though more work is needed, we are grateful for the supportive role of our stakeholders during this restructuring phase. Our focus remains on delivering a safe and reliable operation, and I am incredibly proud of our team members who have risen to the occasion to care for our guests.”

For ongoing updates and detailed information about Spirit Airlines' restructuring journey, visit www.spiritrestructuring.com. Further insight into the Chapter 11 process, court filings, and related documents can be accessed at https//dm.epiq11.com/SpiritAirlines or through Spirit’s restructuring information hotline at (855) 952-6606 (U.S. toll-free) or +1 (971) 715-2831 (international).

Spirit Airlines remains dedicated to providing the best value in air travel, emphasizing safety and customer satisfaction. With a fleet composed entirely of Airbus aircraft, Spirit services numerous destinations throughout the United States, Latin America, and the Caribbean. Discover more about their special offers at spirit.com.

This comprehensive restructuring initiative not only aims to stabilize Spirit Airlines' financial footing but also to ensure that it continues to deliver competitive travel options amidst a constantly evolving airline landscape.