Spirit Airlines Secures $100 Mln Financing As Restructuring Drags On
(RTTNews) - Spirit Aviation Holdings Inc. (FLYYQ) has lined up another $100 million in short-term financing, giving the airline some breathing room as it navigates its second bankruptcy in less than a year.
The funding comes after Spirit amended its debtor-in-possession credit agreement with lenders, easing immediate liquidity stress. Half of the amount, $50 million, is available right away. Access to the remaining funds depends on the company making further progress on its standalone restructuring plan or pursuing a broader strategic transaction.
Spirit said flights, ticket sales, and holiday travel plans will continue as normal.
Chief Executive Officer Dave Davis said lender support reflects confidence in the progress the airline has made in recent months as it works through its restructuring.
The carrier has been hit by a tough operating environment for U.S. airlines, including government disruptions, trade tensions, and network challenges that have weighed on travel demand. At the same time, pricing pressure from larger airlines offering basic economy fares has made it harder for ultra-low-cost carriers like Spirit to compete.
Spirit filed for Chapter 11 bankruptcy again in August after a previous restructuring fell apart, despite cutting about $795 million in debt and securing additional capital from bondholders. Cost reductions have been a key part of the latest effort. In November, the airline announced 150 job cuts across corporate and operational roles, following earlier furloughs of roughly 1,800 flight attendants and at least 270 pilots.
When Spirit first sought bankruptcy protection in November 2024, it employed about 12,800 people and was working to restructure roughly $1.6 billion in debt. As of June 30, the airline operated 215 Airbus A320-family aircraft, most of them leased under long-term agreements running through 2043.
FLYYQ currently trades at $0.21 or 16% lower on the OTC Markets OTCPK.
