Spirit Cancels 27 Aircraft Leases with AerCap to Reduce Debt Further
Spirit Airlines has forged a new agreement with lessor AerCap, enabling the airline to terminate leases on 27 Aircraft. This move is designed to reduce operational expenses while Spirit aims to decrease debt and stabilize finances during its Chapter 11 restructuring process.
In a hearing held by the US Bankruptcy Court for the Southern District of New York on September 30, 2025, Spirit indicated that it has made “significant progress” in restructuring under Chapter 11.
As part of its restructuring strategy, Spirit secured a multi-tranche debtor-in-possession (DIP) financing facility of up to $475 million from its current bondholders. This funding will provide the airline with “additional financial flexibility to support normal business operations during its restructuring efforts.”
Furthermore, in its motion for utilizing cash collateral, Spirit reported that it gained immediate interim access to $120 million in liquidity.
The revised agreement with AerCap is expected to “accelerate its fleet optimization strategy.” As part of this new deal, AerCap will pay Spirit $150 million. The rejection of these leases is anticipated to help the airline “reduce operating costs by hundreds of millions of dollars,” as part of its broader operational and financial adjustments.
This agreement also resolves all disputes and claims between AerCap and Spirit, ensuring the future delivery of 30 aircraft. Both the DIP financing and the updated AerCap agreement require court approval, with deliberations set for October 10, 2025.
“These steps mark significant progress in a short timeframe to build a stronger Spirit,” stated Dave Davis, President and CEO of Spirit. He acknowledged the support from stakeholders during this restructuring phase, highlighting the continued work ahead.
Despite these changes, Spirit noted that discussions with key stakeholders are ongoing. The airline anticipates announcing further agreements with additional lessors, which may include new liquidity options and further fleet rationalization. This initiative is part of their plan to streamline operations and yield substantial cost savings.
On September 29, 2025, Spirit announced plans to cease operations at Minneapolis–Saint Paul International Airport (MSP) in Minnesota and at Bradley International Airport (BDL) in Hartford, Connecticut, in 2025.
How do you see these changes impacting Spirit Airlines’ future operations?
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