Spirit’s AerCap Lease Rejection Deal Could Save Millions

Spirit Airlines has reached a tentative agreement to reject leases on 27 aircraft leased from AerCap, the American-Irish aviation leasing company, as part of its ongoing Chapter 11 restructuring process.

This agreement enables Spirit to accelerate its fleet optimization strategy, reducing operating costs by hundreds of millions of dollars.

As part of the deal, AerCap will pay Spirit $150 million and resolve all outstanding claims and disputes between the two companies, while ensuring the future delivery of 30 replacement aircraft.

Spirit also obtained up to $475 million in debtor-in-possession (DIP) financing from existing bondholders. These funds will support ongoing operations, payroll, and vendor obligations during the restructuring process.

On the upcoming October 10 hearing, Spirit will seek court approval for both the AerCap deal and DIP financing.

Check out our detailed explainer for a complete overview of Spirit’s two bankruptcies and restructuring efforts.

Photo by Bhavya Patel on Unsplash