A Spirit Airlines aircraft was being prepared for departure at Austin-Bergstrom International Airport in Austin, Texas, on February 12, 2024. Spirit Airlines announced on Friday that it had secured an agreement with its credit card processor to extend a debt refinancing timeline to December, narrowly avoiding a scheduled deadline.
In a filing late Friday, Spirit Airlines revealed that it had utilized its entire $300 million revolving credit facility earlier in the week and anticipated ending the year with over $1 billion in liquidity. The company highlighted in the same filing that discussions with holders of its senior secured notes due in 2025 and convertible senior notes due in 2026 were ongoing.
Previously set in September, the deadline had been extended to October 21 before being further modified on Friday. On that day, the airline’s stock closed at a new low, falling approximately 3% to under $1.50 per share.
Based in Miramar, Florida, Spirit Airlines has taken several measures to conserve cash over the past year, including furloughing workers, reducing its flight schedule, and deferring aircraft deliveries. Many of its planes have been grounded due to a recall of Pratt & Whitney engines. The airline has also faced weaker-than-expected bookings and a planned acquisition by JetBlue Airways was blocked by a federal judge on antitrust grounds.
Spirit Airlines’ stock has dropped over 90% this year, with a nearly 40% decline in October alone. Earlier this month, The Wall Street Journal reported that Spirit Airlines was contemplating a bankruptcy filing. The airline and its advisor, Perella Weinberg Partners, have not commented on this matter.
