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Spirit Faces Saturday Cash Test as U.S. Rivals Prepare Rescue Fares

Lenders have tied a $100 million DIP draw to acceptable terms for a sale or a standalone reorganization.

Overview

  • Executives at multiple U.S. airlines told The Air Current they are readying backup schedules and rescue fares in case Spirit halts operations as soon as Saturday.
  • Spirit denies it is preparing to cease flying, says flights are operating normally, and characterizes ongoing discussions with DIP providers as productive.
  • The next $100 million under Spirit’s debtor-in-possession financing requires either detailed sale terms or a standalone plan acceptable to lenders by Dec. 13.
  • Recent liquidity moves include a bankruptcy court–approved sale of two Chicago O’Hare gates to American for $30 million and temporary pilot pay and benefit reductions.
  • Competitors are monitoring the situation given the risk of stranded customers during a busy travel period, with 428 Spirit flights scheduled on Dec. 13.