A Spirit Airlines aircraft was being prepared for departure at Austin-Bergstrom International Airport in Austin, Texas, on February 12, 2024. On Friday, Spirit Airlines announced it had reached an agreement with its credit card processor to extend a debt refinancing timeline to December, just before a deadline was due to expire.
According to a filing made late Friday, Spirit Airlines had accessed the full amount of its $300 million revolving credit facility, anticipating ending the year with liquidity slightly exceeding $1 billion. The company stated in the filing that it is actively and constructively engaging in discussions with holders of its senior secured notes due in 2025 and its convertible senior notes due in 2026 regarding their respective maturities.
The deadline, initially scheduled for September, had been extended until October 21 before the change on Friday. The airline’s stock fell to a new low, decreasing approximately 3% to under $1.50 per share. Spirit Airlines, headquartered in Miramar, Florida, has implemented furloughs, reduced its schedule, and deferred aircraft deliveries to conserve cash over the past year.
Operational challenges have persisted as numerous aircraft remained grounded following a Pratt & Whitney engine recall. Furthermore, the airline has reported weaker-than-anticipated bookings, and its planned acquisition by JetBlue Airways was terminated after a federal judge blocked the merger on antitrust grounds. Spirit Airlines’ stock has plummeted by over 90% this year and nearly 40% in October alone.
The Wall Street Journal recently reported that the airline is contemplating a bankruptcy filing. However, both Spirit Airlines and their advisor, Perella Weinberg Partners, have not provided an immediate comment on this matter.
