Spirit Airlines has engaged financial adviser PJT Partners and consulting firms FTI and Seabury Airline Strategy Group to explore strategic alternatives as it makes a troubled exit from Chapter 11.
The airline borrowed USD275m through a revolving credit to avoid financial difficulties, maturing on September 30, 2026. Spirit has also revised its credit card processing agreement with US Bank National Association, extending it until December 31, 2027.
The airline furloughed 270 pilots and downgraded 140 captains, seeking additional revenue sources amidst adverse market conditions. Moody’s Ratings predicts Spirit will exhaust over USD500m in cash this year, risking default events by year-end.
Spirit CEo Ted Christie shared, “We will not comment on market rumors and speculation The company remains hard at work on many initiatives to protect our business. Our focus is on making the necessary changes to better position the company and build a stronger airline.”
