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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The routes set to be canceled on Oct. 2 include service to:

Albuquerque, New Mexico (ABQ)
Birmingham, Alabama (BHM)
Boise, Idaho (BOI)
Chattanooga, Tennessee (CHA)
Columbia, South Carolina (CAE)
Oakland, California (OAK)
Portland, Oregon (PDX)
Sacramento, California (SMF)
Salt Lake City, Utah (SLC)
San Diego, California (SAN)
San Jose, California (SJC)

The airline said in a statement that it apologizes for the inconvenience to customers and will contact passengers with existing reservations to discuss their options. Spirit Airlines announced it will permanently discontinue 11 routes serving U.S. cities as the budget carrier continues to grapple with mounting financial difficulties that have led to two bankruptcy filings in less than a year.

The routes set to be canceled on Oct. 2 include service to:

Albuquerque, New Mexico (ABQ)
Birmingham, Alabama (BHM)
Boise, Idaho (BOI)
Chattanooga, Tennessee (CHA)
Columbia, South Carolina (CAE)
Oakland, California (OAK)
Portland, Oregon (PDX)
Sacramento, California (SMF)
Salt Lake City, Utah (SLC)
San Diego, California (SAN)
San Jose, California (SJC)
Plans to launch services in Macon, Georgia, later in October have also been canceled.

The airline said in a statement that it apologizes for the inconvenience to customers and will contact passengers with existing reservations to discuss their options.

Spirit filed for bankruptcy protection at the end of August, marking its second such filing in under a year after previously seeking protection in November. The carrier is working to reorganize its operations to address its ongoing financial challenges.The route cancellations represent the latest effort by Spirit to streamline its operations as it navigates through the bankruptcy process.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.

Credit: fox4now

The post Spirit Airlines cancels routes in 11 cities amid financial struggles first appeared on AircrewNews.com.