Spirit Airlines Gets $100 Million Lifeline, Will Keep Flying

It’s been a rough few weeks for Spirit Airlines, which is in the midst of a financial crisis that has led to 2 bankruptcies. There were also rumors the airline would miss a critical debt repayment over the weekend and potentially shut down.

But there’s a bright spot today: The airline has worked out an agreement with its creditors to access millions in much-needed cash as it works to stay afloat.

Here’s what this means for travelers.

Spirit Works Out Agreement After Shutdown Rumors

Spirit Airlines announced on December 15 that it had reached an agreement with its creditors for a $100 million lifeline. Of that, Spirit has access to $50 million immediately, and the remaining amount is subject to “previously agreed conditions” for the airline’s reorganization or a strategic transaction.

With the influx of cash, Spirit says flights, ticket sales, and operations will continue “as usual.”

“We are grateful to our lenders for continuing to support Spirit’s transformation, recognizing all the significant progress our team has made in recent months,” said Spirit CEO Dave Davis. “We continue to provide high-value travel options, which benefit American consumers whether they fly with us or not, and look forward to welcoming our guests aboard throughout this holiday season and into the future.”

This is a rare bright spot for Spirit in what has been a difficult few months.

The airline entered Chapter 11 bankruptcy protection again in August after emerging from proceedings in March. It didn’t completely solve Spirit’s financial woes, however, and in recent months the airline has had to refocus its network on key markets and furlough nearly 1,800 flight attendants. 

Over the weekend, rival carriers were said to be preparing for the airline to go under, which wasn’t the first time airlines braced for Spirit to fold. Earlier this fall, United Airlines expanded several routes across the U.S., targeting Spirit’s popular routes, prompting backlash from the budget carrier.

Just days ago, Spirit reached tentative agreements with the unions representing its pilots and flight attendants. Davis praised the deal, saying it moved the airline “forward in our mission to better position the airline and secure a future with value travel options for Americans.” 

Final Thoughts

Spirit Airlines has received a lifeline of $100 million — including immediate access to $50 million of that sum — as it works through its second round of Chapter 11 bankruptcy proceedings.

Spirit will still sell tickets and continue operations as usual, which is good news for travelers with upcoming flights on the airline.