Spirit unlocks funding of up to $100M, lenders recognize ‘significant progress’

Troubled low-cost carrier Spirit Airways has secured up to $100 million in funding, after CEO Dave Davis said lenders had recognized “all the significant progress” made in recent months.

On December 15, 2025, Spirit Aviation Holdings, the parent company of Spirit Airlines, confirmed that it had reached an agreement to amend its debtor-in-possession credit agreement.

The debtor-in-possession credit agreement allows for companies in bankruptcy proceedings under Chapter 11 to obtain funding for ongoing operations.

“The amendment provides for the previously agreed third funding round of an incremental $100 million to be fulfilled today,” said Spirit.

According to Spirit, $50 million is useable immediately while the other half is “subject to previously agreed conditions that relate to further progress on a standalone plan of reorganization or a strategic transaction”.

YES Market Media / ShutterstockA strategic transaction could include a possible merger with another airline. Spirit said it is “currently in active negotiations on each of these possibilities”.

“We are grateful to our lenders for continuing to support Spirit’s transformation, recognizing all the significant progress our team has made in recent months,” said Davis. “We continue to provide high-value travel options, which benefit American consumers whether they fly with us or not, and look forward to welcoming our Guests aboard throughout this holiday season and into the future.”

Last week, Spirit announced that its pilot and flight attendant groups had ratified new agreements to support the airline’s future and that over the past 60 days, the company had “dramatically repositioned its fleet and improved its cost structure”.

“The airline continues to develop its product offerings, which range from economical to premium, but in all cases are designed to offer compelling value, while never deviating from delivering a top-tier operation,” said Spirit Airlines.

Spirit is being forced to make significant cuts and changes as part of its filing for Chapter 11 bankruptcy protection in August 2025.

Spirit emerged from its first round of Chapter 11 bankruptcy protection in March 2025 but with US demand remaining stagnant, cheap fares being offered by competitors and operating costs remaining high, the airline struggled to regain a stable footing.

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