Amid Another Bankruptcy, Spirit Airlines May Receive $475 Million Lifeline

Amid its second bankruptcy within the last year, Spirit Airlines recently disclosed that it has negotiated to receive up to $475 million in funding to maintain its operations.

Spirit Aviation Holdings, Inc., the carrier’s parent company, announced the news in a press release dated September 30. The organization disclosed that “existing bondholders” will provide the funding, subject to court approval. Should the latter occur on October 10, the day the hearing is scheduled, Spirit expects to get $200 million “immediately.”

Spirit explained that the funding will provide it with wiggle room as it navigates its latest financial restructuring. In August, the carrier filed for Chapter 11 bankruptcy. Notably, it also filed for financial restructuring in November 2024 and emerged from it in March 2025.

An August 2025 quarterly earnings report notified Spirit’s investors that the airline’s financial stability through the following year was uncertain. The company attributed its struggles to the “challenging pricing environment” within the current airline industry.

What Else Is There To Know About Spirit Airlines’ Bankruptcy And Finances?

In the September press release, Spirit noted that it “obtained immediate interim access to $120 million of liquidity.” Additionally, the October 10 hearing is scheduled to determine whether the company’s agreement with AerCap can proceed. The latter company is the carrier’s “largest aircraft lessor.” The deal between the two would see Spirit reject the leases on 27 aircraft from AerCap. Meanwhile, the lessor would pay the airline $150 million.

Spirit’s President and Chief Executive Officer, Dave Davis, commented on Spirit’s updates in the press release.

“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 Davis. “While there’s more work to be done, we’re grateful to our stakeholders who have stepped up to support us during the restructuring. We remain focused on delivering a safe, reliable operation, and I’m incredibly proud of our team members for continuing to rise to the occasion and take great care of our guests.” 

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