A Spirit Airlines Airbus A320 taxis at Los Angeles International Airport after arriving from Boston on September 1, 2024 in Los Angeles, California. Kevin Carter | Getty Images News | Getty ImagesWHITE PLAINS, N.Y. — Spirit Airlines is making “massive progress” to revitalize the airline, the carrier’s restructuring lawyer Marshall Huebner said in a court hearing Tuesday.The struggling budget airline has reached an agreement with some of its debtholders for up to $475 million in debtor-in-possession financing, a lifeline that bankrupt companies can use to continue operating, as well as $150 million from a major aircraft lessor, Huebner said. The agreements are subject to court approval.Spirit last month filed for its second Chapter 11 bankruptcy protection in less than a year after high costs, weaker demand and a host of other lingering problems drove more than $250 million in losses from when it emerged from its first bankruptcy in March through June.The carrier has been racing to slash costs and recently announced plans to cut 40 routes and furlough about one-third of its flight attendants. The airline is in talks with its pilots’ union and is seeking about $100 million in cuts from that group. Last month, Spirit said it was drawing down the entirety of the $275 million in its revolver.Huebner, a partner at Davis Polk & Wardwell, said in U.S. Bankruptcy Court on Tuesday that people who are pessimistic about the struggling carrier’s turnaround prospects should “say less” and observe what it’s doing.Spirit said on Tuesday that it now has immediate access to $120 million in liquidity after a motion was granted to use cash collateral.Read more CNBC airline newsTrump administration orders Delta, Aeromexico to unwind joint venture by Jan. 1Spirit Airlines files for Chapter 11 bankruptcy protection for the second time in a yearSpirit Airlines is on shakier ground after avoiding hard decisions in bankruptcyHow much are Southwest’s new assigned seats? It dependsSpirit is planning to reject leases on 27 Airbus narrow-body aircraft from Ireland-based leasing giant AerCap, 25 of them airplanes that are grounded or will be grounded for inspection due to a Pratt & Whitney engine defect, Huebner said in court. AerCap will pay Spirit $150 million as part of the agreement, under which Spirit would still plan to take delivery of …
