Spirit Airlines secures $475 million DIP financing amid restructuring

Spirit Airlines has announced the negotiation of up to US$475 million in debtor-in-possession (DIP) financing as it advances its restructuring under Chapter 11 bankruptcy protection in the United States.

The carrier stated that the arrangement, reached with existing creditors, is subject to court approval, with a hearing scheduled for October 10, 2025.

If approved, the DIP financing will provide Spirit with immediate access to $200 million. Additionally, the airline has already secured $120 million in liquidity through the use of cash collateral, further supporting ongoing operations during the restructuring period.

“These are significant steps forward in a short period of time to build a stronger Spirit and secure a future with high-value travel options for American consumers,” said Dave Davis, CEO of Spirit.

As part of its fleet management strategy, Spirit reached an agreement with lessor AerCap that will result in $150 million in proceeds and allow the carrier to reject 27 aircraft contracts. This deal also settles outstanding disputes and claims between Spirit and AerCap, while confirming delivery of 30 aircraft to the airline.

The restructuring process includes other measures to optimize the cost structure, such as the rejection of 12 airport lease agreements and 19 ground handling contracts, all approved by the bankruptcy court. Spirit is also in active discussions with key stakeholders regarding further agreements with lessors and is working with major unions on potential savings in collective bargaining agreements.

Spirit’s current fleet is composed mainly of Airbus A320 family aircraft, used on domestic and short-haul international routes.

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