TSL Express Daily News

Spirit Aviation Holdings Inc. received a short-term lifeline from creditors after securing access to another tranche of financing, easing immediate pressure on the carrier as it works through its second bankruptcy in less than a year.

The ultra-low-cost carrier said it amended its debtor-in-possession credit agreement to provide access to $100 million in incremental funding, according to a Monday statement.

Of that amount, $50 million is immediately available for use, while access to the remainder is contingent on continued progress toward a standalone reorganization plan or a strategic transaction.

Spirit said flights, ticket sales and operations will continue as usual over the holidays.

“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 President and Chief Executive Officer Dave Davis in the statement.

Spirit has been buffeted by a bruising year for US aviation, which has included a government shutdown, trade feuds and network disruptions that have curbed flying. Beyond these factors, the basic economy fares and strong networks of major carriers like United Airlines Inc. have made it harder for traditional discounters like Spirit to compete.

Read More: Spirit Airlines Files for Second Bankruptcy in Under a Year (2)

Spirit filed for Chapter 11 bankruptcy for the second time in August, marking the failure of an earlier restructuring that cut about $795 million in debt from its balance sheet and required bondholders to inject additional capital into the business.

The Florida-based airline has been taking steps to reduce labor costs as part of the restructuring. In November, Spirit announced 150 job cuts across corporate and operational roles. Earlier this year, it furloughed roughly 1,800 flight attendants and at least 270 pilots.

Read More: Spirit Airlines Cuts 150 Salaried Jobs in Bankruptcy Exit Push

Spirit employed roughly 12,800 people at the time of its first bankruptcy filing in November 2024 to restructure about $1.6 billion in debt.

As of June 30, the carrier had 215 A320-family aircraft, including 148 financed under operating leases with terms expiring between 2026 and 2043. Spirit owned 49 planes and had 18 under finance leases.