Spirit Airlines Secures $150 Million in Funding Through Aircraft Deal with AerCap
Spirit Airlines Secures $150 Million in Funding Through Aircraft Deal with AerCap
U.S.-based ultra-low-cost carrier Spirit Airlines has reached a key agreement with Irish aircraft lessor AerCap as part of its ongoing Chapter 11 bankruptcy restructuring. Under the deal, Spirit will forgo the delivery of 27 new Airbus A320neo family aircraft in exchange for a $150 million cash infusion. The agreement is pending court approval at a hearing scheduled for October 10.
As part of its broader cost-cutting and downsizing strategy, Spirit has also terminated 12 airport lease agreements and 19 ground-handling contracts. Additionally, the airline has furloughed approximately 1,800 flight attendants and several hundred pilots. Network reductions are significant, with flight capacity being cut by 25% as the airline shifts focus from expansion to financial stabilization.
To date, Spirit has accessed $120 million in interim financing, with up to $475 million in additional funding available if restructuring milestones are achieved.
The airline continues to face substantial operational and financial headwinds. Ongoing engine issues, intense competition from major legacy carriers, and a damaged brand reputation have contributed to the carrier’s weakened market position. While the recent financial support offers temporary relief, Spirit faces a challenging path toward recovery, especially as competitors move to capture the market share left by its route withdrawals.
