Spirit Airlines Gains $625M Lifeline Amid Second Bankruptcy

Benzinga

Spirit Airlines won court approval for $625M in new financing to stay afloat during its second bankruptcy since November. The carrier is cutting routes, rejecting leases, and seeking labor savings amid rising costs and an engine recall.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Spirit Airlines secured $475 million in court-approved financing and an additional $150 million from AirCap,

00:11offering temporary relief as it navigates its second bankruptcy since November, according to CNBC.

00:17The U.S. Bankruptcy Court in New York approved the funding to help the low-cost carrier continue operations,

00:23with $200 million available immediately.

00:26Spirit has rejected 27 aircraft leases and continues to slash routes, shrink its fleet, and furlough about one-third of its flight attendants.

00:35The airline is also in talks with its pilots' union for $100 million in labor savings.

00:41CEO Dave Davis said the ruling marks another significant milestone in the restructuring.

00:46Spirit's struggles stem from rising costs, an engine recall, and a failed JetBlue acquisition.

00:51For all things money, visit Benzinga.com.

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