Overview

• Spirit tapped its entire $275 million revolving credit facility, with borrowings maturing on Sept. 30, 2026, to bolster near-term cash.
• The airline secured a two-year extension with processor Elavon to run through 2027, agreeing to pledge $50 million in cash and allow up to $3 million per day in holdbacks until exposure is collateralized.
• The moves follow Spirit’s recent disclosure that it may not be able to continue operating for 12 months without more cash, after losing nearly $257 million from March 13 through June.
• Management is pursuing asset sales and has cut capacity, removing about 1 million seats in May–June, while planning roughly 270 pilot furloughs and demotions for additional captains.
• Aircraft lessors have contacted rival carriers about taking Spirit’s roughly 200 Airbus jets, as the company contends with weak domestic leisure demand and a challenging pricing environment.