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Spirit Airlines financing: $475M court approval
Spirit Airlines financing won a key court green light on October 10, 2025, securing $475 million to sustain operations through Chapter 11.
The debtor-in-possession (DIP) loan — a short-term credit facility used by companies in bankruptcy — gives Spirit Airlines (IATA: NK, ICAO: NKS) immediate liquidity and confirmed access to aircraft while the carrier reorganizes under US Chapter 11. The deal, approved by a US bankruptcy court on October 10, 2025, also followed a separate agreement with Spirit’s largest aircraft lessor to stabilize the fleet during the restructuring.
What Spirit Airlines financing means for operations
The $475M package is designed to keep planes in the air, payroll met and schedules intact as restructuring talks continue. For passengers, the practical outcome should be fewer last-minute cancellations and clearer short-term capacity planning. For creditors and lessors, the financing creates breathing room while negotiations over leases, contracts and the airline’s reorganized plan move forward.
Court-approved DIP financing is common in Chapter 11 cases because it prioritizes new lenders to protect essential services. Spirit’s management has said the funds will be used for operating costs and to secure continued access to its leased aircraft — a critical point given the carrier’s reliance on third-party lessors to maintain its network.
- Immediate effect: Spirit Airlines financing provides cash runway and confirmed aircraft access to avoid large-scale schedule disruptions.
- Short-term aim: maintain passenger service and stabilize revenues while restructuring proceeds.
- Next steps: lease and creditor negotiations, and a court-supervised restructuring timeline under Chapter 11.
Though the carrier hasn’t publicly disclosed all counterparty names in the agreement with its biggest lessor, the combined court approval and lessor deal mark a milestone in Spirit’s Chapter 11 chapter. Travelers should keep an eye on airline notifications and check flight status directly with Spirit (NK/NKS) as the company works toward a longer-term solution.
