Spirit Airlines (NK, Fort Lauderdale International) has signed an amendment to its card processing agreement with the US Bank National Association that prolongs its 2025 notes extension deadline from October 21 to December 23, 2024. In an October 18 regulatory filing, the low-cost carrier said it had also fully drawn down its USD300 million revolving credit facility due to mature on September 30, 2026.
The two-month extension gives Spirit extra time to refinance USD1.1 billion in loyalty bonds and wards off the immediate threat of having to file for Chapter 11. It also keeps the carrier's credit card processing agreement intact.
"As previously disclosed, the company remains in active and constructive discussions with holders of its senior secured notes due 2025 and convertible senior notes due 2026 with respect to their respective maturities," the filing reads. "Consistent with its previously provided guidance, the company expects to end the year 2024 with over USD1 billion of liquidity, including unrestricted cash and cash equivalents, short-term investment securities, and additional liquidity initiatives, assuming that the company is able to close those initiatives that are currently in process."
Despite buoyant travel demand in the markets it serves, Spirit has lost money in five of the last six quarters and has been under financial pressure since a USD3.8 billion merger deal with JetBlue Airways (B6, New York JFK) collapsed. In the short term, Spirit has furloughed pilots, offered staff buyouts and deferred aircraft deliveries to reduce costs. In early October, the Wall Street Journal reported that a filing for Chapter 11 was under consideration.
According to ch-aviation PRO airlines data, Spirit Airlines flies to 85 airports in countries across North, Central, and South America. Its fleet of 217 aircraft include seven A319-100s, sixty-four A320-200s, ninety-one A320-200Ns, thirty A321-200s, and twenty-five A321-200NX.
