Spirit Airlines Advances Chapter 11 Restructuring with Financial and Operational Initiatives

Spirit Airlines has announced substantial progress in its Chapter 11 restructuring efforts, including securing a debtor-in-possession (DIP) financing facility of up to $475 million from existing bondholders. This financing, pending court approval on October 10, 2025, is intended to provide the airline with additional financial flexibility during its restructuring process. Upon approval, $200 million is expected to be available immediately.

Additionally, the company has obtained interim access to $120 million in liquidity as part of its motion for the use of cash collateral. In a strategic move to optimize its fleet, Spirit has reached an agreement with AerCap Ireland Limited, its largest aircraft lessor. The agreement includes a $150 million payment to Spirit and the rejection of leases on 27 aircraft, aiming to reduce operating costs by hundreds of millions of dollars. This agreement is also subject to court approval at the upcoming hearing.

The U.S. Bankruptcy Court for the Southern District of New York has approved Spirit's motion to reject 12 airport leases and 19 ground handling agreements, aligning with the company's network adjustments and cost rationalization efforts. Ongoing discussions with key stakeholders are expected to result in additional agreements with lessors, new liquidity sources, and further fleet optimization, contributing to significant cost savings.

Spirit is also engaging with its principal labor unions to identify potential cost savings within collective bargaining agreements. Dave Davis, President and CEO, stated, "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."

The company maintains a dedicated website about its restructuring process at www.spiritrestructuring.com. Additional information about the Chapter 11 case, including access to court filings and other related documents, is available at https://dm.epiq11.com/SpiritAirlines or by calling Spirit's restructuring information line at (855) 952-6606 (U.S. toll-free) or +1 (971) 715-2831 (international).