In a significant move to navigate its financial challenges, Spirit Airlines has canceled its commitment to purchase 52 Airbus A320neo family aircraft and declined options for 10 additional jets.
This decision, part of a fleet-optimization settlement with aircraft lessor AerCap, was approved by the U.S. Bankruptcy Court for the Southern District of New York on October 10, 2025.
The agreement comes as Spirit undergoes its second Chapter 11 bankruptcy filing within a year, aiming to streamline operations and emerge as a leaner, more efficient airline.
Importance of the Settlement
Spirit’s financial troubles intensified in late August 2025 when AerCap, a major aircraft lessor, terminated lease agreements for 36 undelivered Airbus A320neo jets scheduled for delivery between 2027 and 2028.
AerCap also declared defaults on 37 planes already in Spirit’s fleet, threatening nearly half of the airline’s operational aircraft.
This prompted Spirit to file for bankruptcy to protect its operations and negotiate a resolution. The settlement allows Spirit to relinquish valuable Airbus production slots to AerCap, which can now reallocate the 52 firm orders and 10 optional jets to other customers or its leasing portfolio.
Key Terms of the Agreement
Under the deal, Spirit will reject 27 of its 37 existing leases with AerCap, significantly reducing its fleet size from approximately 214 aircraft to about 114—a nearly 50% cut. This aligns with Spirit’s broader strategy to retire older planes and eliminate around 40 unprofitable routes.
In exchange, AerCap will provide Spirit with a $150 million cash infusion to support its restructuring efforts. AerCap also retains $9.7 million in security deposits and can file an unsecured claim of up to $572 million, with recovery amounts to be determined.
Additionally, Spirit has secured up to $475 million in debtor-in-possession financing from existing creditors to maintain liquidity.
To modernize its remaining fleet, Spirit will enter new leases with AerCap for 30 Airbus A320 or A321 aircraft, with deliveries planned between 2027 and 2029. This move ensures Spirit can gradually upgrade its all-Airbus A320-family fleet while focusing on cost efficiency.
Operational and Workforce Impacts
The fleet reduction comes with tough operational changes. Spirit plans to furlough approximately 1,800 flight attendants—about one-third of its cabin crew—starting December 1, 2025. The airline has also terminated 12 airport leases and 19 ground-handling agreements to cut costs further.
These steps reflect Spirit’s commitment to focusing on profitable routes while maintaining its low-cost model, ensuring affordable travel for customers.
Looking Ahead
Spirit’s leadership emphasizes that operations remain stable during the restructuring process. The airline aims to emerge from bankruptcy as a more sustainable carrier, prioritizing efficiency and customer value.
By shedding unprofitable assets and modernizing its fleet, Spirit hopes to strengthen its position in the competitive ultra-low-cost carrier market.
As Spirit navigates this challenging period, its focus on affordability and operational resilience will be key to its recovery.
