Spirit Airlines Wins Approval for $475M DIP Financing and AerCap Deal

Spirit Airlines has received bankruptcy court approval to secure debtor-in-possession (DIP) financing of up to $475 million.

Additionally, the court approved a restructuring agreement with aircraft lessor AerCap, including the rejection of leases on 27 aircraft and an injection of $150 million from AerCap to support Spirit’s ongoing Chapter 11 bankruptcy restructuring.

As part of its restructuring plan, Spirit aims to reduce its fleet from 214 aircraft to approximately 100. This involves terminating leases on numerous Airbus A320 and A321 aircraft, with AerCap taking over the pending orders of newer planes to be delivered starting in 2027.

The airline is also furloughing about 1,800 flight attendants and slashing its flight capacity by 25 percent to concentrate operations on more profitable markets.

Other than that, Spirit emphasizes that flights will continue to operate normally during bankruptcy proceedings, allowing customers to book travel and use loyalty benefits as usual.

Spirit Airlines filed for Chapter 11 bankruptcy protection on August 29, 2025, marking its second bankruptcy within a year following an initial filing in November 2024.

The company has faced multiple challenges, including a failed merger with JetBlue, rising labor and fuel costs, weak demand, and increased competition. For more details, check out the explainer that covers the whole background of Spirit’s bankruptcy.

Photo by Jack Plant on Unsplash