Spirit Airlines has negotiated a new agreement with lessor AerCap to reject leases on 27 AerCap aircraft, which will help lower operating costs as the airline aims to cut debt and stabilize its finances as it goes through Chapter 11 restructuring.
At a hearing before the US Bankruptcy Court for the Southern District of New York on September 30, 2025, the airline reported “significant progress” in its Chapter 11 restructuring.
As part of its restructuring plan, the company negotiated a multi-tranche debtor-in-possession (DIP) financing facility of up to $475 million from its existing bondholders. The airline said that this will provide it with “additional financial flexibility to support normal business operations during its restructuring”.
Additionally, as part of its motion for the use of cash collateral, the airline said it obtained immediate interim access to $120 million of liquidity.
According to Spirit, the revised deal with AerCap will “accelerate its fleet optimization strategy” and AerCap will pay Spirit $150 million as part of the deal. Spirit noted that the revised agreement was part of its broader operational and financial changes and rejecting the leases will allow the airline “reduce operating costs by hundreds of millions of dollars.”
The agreement also settles all claims and disputes between AerCap and Spirit and ensures the future delivery of 30 aircraft. Both the DIP financing and the revised AerCap agreement are subject to court approval and will be considered at a hearing on October 10, 2025.
“These are significant steps forward in a short period of time to build a stronger Spirit,” said Dave Davis, President and CEO. “While there’s more work to be done, we’re grateful to our stakeholders who have stepped up to support us during the restructuring.”
However, despite the ongoing restructuring and lease rejections, the carrier said that “active discussions with key stakeholders continue”.
“The company expects to announce agreements with additional lessors, including new liquidity and further fleet rationalization, as a part of the rightsizing of the business that will generate significant cost savings,” the airline said.
On September 29, 2025, Spirit announced that it will cease operations at Minneapolis–Saint Paul International Airport (MSP) in Minnesota, and Bradley International Airport (BDL) in Hartford, Connecticut, in 2025.