A Spirit Airlines plane was being readied for takeoff at Austin-Bergstrom International Airport in Austin, Texas, on February 12, 2024. In financial developments, Spirit Airlines announced on Friday that it had struck a deal with its credit card processor, extending its debt refinancing deadline to December. This move came just before the original deadline, previously postponed from September to October 21. Earlier in the week, Spirit accessed the full $300 million from its revolving credit line and anticipates closing the year with over $1 billion in liquidity. The company is actively negotiating with holders of its senior secured notes due in 2025 and convertible senior notes due in 2026. Amid financial struggles, Spirit Airlines’ stock fell to a new low, closing at under $1.50 per share, marking a 90% drop this year. The airline, based in Miramar, Florida, has implemented cost-cutting measures, including layoffs, reduced schedules, and deferred aircraft deliveries. Many aircraft remain grounded due to a Pratt & Whitney engine recall, and the airline reported weaker-than-expected bookings. Its acquisition by JetBlue Airways was blocked on antitrust grounds. Recently, The Wall Street Journal suggested that Spirit might consider filing for bankruptcy, but no official comments have been made regarding this speculation.
Original Story https://www.cnbc.com/2024/10/18/spirit-airlines-debt-deadline.html
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