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