Spirit Airlines has announced a deal that will allow it to emerge from bankruptcy early.
The budget airline had filed for its second bankruptcy in August of last year as cash reserves dwindled and losses continued to grow. Spirit told the bankruptcy court that it expects to emerge from the process as a leaner airline that’s focused on routes and time periods with the strongest demand, after cutting some of its high-cost aircraft leases and improving the utilization of its remaining fleet. The projected total debt and lease obligations will decline under the bankruptcy deal from $7.4 billion before it’s Chapter 11 filing to about $2.1 billion when bankruptcy ends. The deal could open the door to an acquisition in the future, as Spirit’s lawyer said during a hearing on Tuesday that it could allow the company to weigh “potential future industry transactions” once the airline is stabilized.
Spirit airlines currently has routes from Arnold Palmer Regional Airport in Latrobe to Myrtle Beach and Orlando.
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