By Rajesh Kumar Singh and Nathan Gomes CHICAGO, Dec 15 (Reuters) – Spirit Airlines said Monday it has secured an additional $100 million in emergency financing to support its operations and restructuring efforts while under bankruptcy protection. The move comes amid mounting speculation about the ultra-low-cost carrier’s future. Aviation outlet The Air Current reported Friday […]
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Spirit Airlines secures $100 million lifeline to stay afloat during bankruptcy
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By Rajesh Kumar Singh and Nathan Gomes
CHICAGO, Dec 15 (Reuters) – Spirit Airlines said Monday it has secured an additional $100 million in emergency financing to support its operations and restructuring efforts while under bankruptcy protection.
The move comes amid mounting speculation about the ultra-low-cost carrier’s future. Aviation outlet The Air Current reported Friday that some rival airline executives believed Spirit could halt operations abruptly around a Dec. 13 deadline if it failed to meet conditions tied to the new funding.
Spirit has repeatedly dismissed those rumors, insisting flights are operating normally and it remains “business as usual.”
The financing was arranged through an amendment to Spirit’s debtor-in-possession (DIP) credit agreement, which allows companies to continue operating during Chapter 11 proceedings.
Under the revised terms, Spirit will receive $50 million immediately to cover day-to-day expenses, with another $50 million available once it advances plans to either reorganize as a standalone carrier or pursue a sale.
Spirit said the additional liquidity reflects progress in its turnaround efforts, noting that flight schedules, ticket sales, and operations remain unaffected.
“We continue to provide high-value travel options that benefit American consumers whether they fly with us or not, and look forward to welcoming our guests throughout the holiday season and beyond,” CEO Dave Davis said in a statement.
The airline’s parent filed for bankruptcy in August for the second time, citing dwindling cash reserves and mounting losses.
Since then, Spirit has cut jobs, trimmed routes, exited 14 airports, and rejected leases on more than 80 aircraft as part of a broader cost-reduction plan.
It has also repositioned its fleet and streamlined its cost structure in recent months. Last week, pilots and flight attendants ratified new labor agreements aimed at supporting the carrier’s long-term recovery.
(Reporting by Rajesh Kumar Singh in Chicago and Nathan Gomes in Bengaluru; Editing by Sahal Muhammed and Nick Zieminski)