Spirit Airlines amends financing agreement, gets immediate $50 million liquidity boost

Spirit Airlines has announced that it has amended its debtor-in-possession (DIP) financing agreement with its senior secured noteholders, which includes $50 million of immediately usable liquidity.

On December 15, 2025, after reports that some United States carriers had been monitoring Spirit Airlines’ situation due to its potential to default and cease operations, the low-cost carrier said that it amended its DIP financing agreement with its senior secured noteholders.

“The amendment provides for the previously agreed third funding round of an incremental $100 million to be fulfilled today.”

$50 million of that sum, minus the original issue discount (OID), is available immediately, it stated, while the remaining $50 million was subject to previously agreed conditions related to the airline’s progress on a standalone plan following its Chapter 11 bankruptcy, or “a strategic transaction,” which is most likely a merger.

The Air Current was the first to report that US airlines had been closely watching Spirit Airlines’ situation, preparing for a sudden end of its operations.

Dave Davis, the President and Chief Executive Officer (CEO) of Spirit Airlines, expressed gratitude to its lenders who have continued to support the airline’s transformation.

Davis affirmed that the carrier continues providing “high-value travel options, which benefit American consumers whether they fly with us or not,” and that the low-cost carrier is looking forward to welcoming its passengers “aboard throughout this holiday season and into the future.”

Spirit Airlines also reiterated that in the past few weeks, it has made significant progress to slash its cost base, including new collective bargaining agreements (CBAs) with its pilots and flight attendants, and the rejection of aircraft and airport facility leases.

In an agreement it had reached with International Aero Engines (IAE), which supplies the engines to the airline, including the troubled Pratt & Whitney PW1100G, Spirit Airlines committed to operating up to 106 A320 family aircraft as of the effective date of its reorganization plan.

At the same time, it had requested the United States Bankruptcy Court for the Southern District of New York to approve a motion to move the deadline to file its reorganization plan. The court approved the motion on December 10, moving the deadline to file the plan from February 25, 2026, to April 28, 2026.

The solicitation period was also extended to June 25, 2026.

Spirit Airlines ended the month of October with a net profit of $20.9 million, yet the airline’s operating loss was $96.3 million, meaning it still had a lot of work to do in order to return to profitability. At the end of the month, it had $644.7 million of cash and cash equivalents.

The Bankruptcy court approved Spirit Airlines’ $475 million DIP financing on October 10, with $200 million of that sum having been available immediately.

Spirit Airlines ends October with $20.9 million net profit

However, it still ended the month with an operating loss of $96.3 million.

The Engine CowlRytis Beresnevicius