Spirit Secures $475M DIP Financing to Fight Bankruptcy Woes

Spirit Airlines has reached agreements with its bondholders to obtain debtor-in-possession financing totaling up to $475 million. The initial tranche of $200 million could be approved immediately upon court authorization, expected at the October 10 hearing.

The carrier is also requesting another $150 million in funding from the aircraft lessor AerCap.

Spirit filed for Chapter 11 protection for the second time in less than a year on August 29, 2025, due to ongoing financial losses, low demand for its services, high lease payments, and failed merger attempts.

The company’s survival now depends greatly on securing financing, achieving labor concessions, and restructuring its fleet and route network.

Just a few days ago, Spirit announced it will cut 40 routes starting in November 2025 and also appointed Andrea Lusso, who formerly worked as JetBlue’s Vice President, as the new VP of Network Planning.

For a complete picture of Spirit’s bankruptcy journey and previous restructuring efforts, check out our detailed explainer.

Photo by Ankush Kesri on Unsplash