In a fleet optimization move, Spirit Airlines will reject its commitment to buy 52 Airbus planes along with its options for 10 others. The aircraft orders will be taken over by aircraft lessor AerCap .

This three-way agreement is part of a dispute settlement between Spirit and AerCap, which was approved on Friday by U.S. Bankruptcy Court for the Southern District of New York.

The conflict with the world’s largest aircraft leasing company was the trigger for pushing Spirit into its second bankruptcy.

In late August, AerCap unexpectedly terminated the lease agreements for 36 new Airbus A320neo family jets that were scheduled for delivery to Spirit between 2027 and 2028. It also claimed default on the leases for 37 aircraft already in the carrier’s operational fleet.

Spirit disputed the validity of AerCap’s claims. But with access to a large portion of its current and future fleet jeopardized, the company was forced to seek bankruptcy protection.

As part of the settlement between the two companies, Spirit will reject 27 out of the 37 leases it holds. AerCap, meanwhile, was granted permission to keep and use $9.7 million in cash security deposits that Spirit provided for the canceled aircraft leases.

The Irish leasing giant also has been granted permission to file a total unsecured claim of up to $572 million against Spirit. It is not clear yet how much it will be able to collect on that claim.

Spirit will give up all its rights to the 36 undelivered jets. Additionally, it will sign new lease agreements with AerCap for 30 new Airbus A320 or A321 airplanes for deliveries spread equally across 2027, 2028 and 2029.

As part of the deal, AerCap will make a cash injection of $150 million into the bankrupt airline.

Separately, Spirit said the court has also approved a debtor-in-possession (“DIP”) financing facility of up to $475 million from its existing bondholders. Of the total financing, $200 million is immediately available to the carrier.

In a statement, Spirit said the agreement allows it to reduce operating costs by hundreds of millions of dollars.

Spirit plans to shrink its operations to reduce its costs. It has decided to furlough approximately 1,800 flight attendants, about one-third of its cabin crew, effective December 1.

The carrier, which currently operates 214 aircraft, also plans to shrink its fleet by nearly 100 aircraft, nearly half of its fleet.

Credits: Spirit Airlines

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The credit line will provide Spirit with additional financial flexibility to support normal business operations during its restructuring. The DIP financing is subject to Court approval, with a hearing scheduled for Oct. 10, 2025. $200 million is expected to be available immediately upon Court approval.

Additionally, Spirit has negotiated an agreement with Ireland-based AerCap, its largest aircraft lessor. Under the agreement, AerCap will pay Spirit $150 million. Spirit will reject leases on 27 aircraft, allowing the it to reduce operating costs by hundreds of millions of dollars. The proposed agreement (which is subject to court approval) also resolves all claims and disputes between AerCap and Spirit and provides for the future delivery of 30 aircraft.

The court has already approved Spirit’s plan to reject 12 airport leases and 19 ground handling agreements, which forms part of the overall restructure.

Spirit also has engaged with trade unions to identify cost savings within the respective collective bargaining agreements.

“These are significant steps forward in a short period of time to build a stronger Spirit and secure a future with high-value travel options for American consumers,” said Dave Davis, President and Chief Executive Officer. “While there’s more work to be done, we’re grateful to our stakeholders who have stepped up to support us during the restructuring. We remain focused on delivering a safe, reliable operation, and I’m incredibly proud of our Team Members for continuing to rise to the occasion and take great care of our Guests.”

Credits: Spirit Airline

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