Dec 15 (Reuters) – Spirit Aviation said on Monday it has secured $100 million in bankruptcy financing, as the ailing carrier works on a restructuring plan.
In August, the parent company of Spirit Airlines filed for bankruptcy for a second time after struggling with dwindling cash reserves and mounting losses.
As part of a broader cost-cutting initiative, Spirit has also been shedding jobs, trimming routes and scaling back operations. The company has already exited 14 airports and rejected leases for over 80 aircraft.
The ultra-low-cost carrier said on Monday that its flights, ticket sales and other operations would continue as usual.
Spirit can tap into $50 million immediately, with access to the remainder tied to restructuring talks or a potential deal.
The carrier did not disclose the source of the funding.
Aviation-focused outlet The Air Current reported on Friday that rival airlines were preparing to capitalize on Spirit’s routes, if the carrier is forced to shut down.
(Reporting by Nathan Gomes in Bengaluru; Editing by Sahal Muhammed)
