Even more rumors about Spirit Airlines' future have now surfaced

After a play of circulating rumors astir an imminent shutdown, Spirit Airlines unopen them down with the announcement that it secured $100 cardinal short-term debtor-in-possession financing that it tin enactment toward sustaining operations.

Half is disposable immediately, portion the different fractional is contingent connected making advancement toward a meaningful restructuring aft the hose filed 2 bankruptcies wrong 9 months of each other.

"$50 cardinal (minus OID) is useable by Spirit instantly and the usage of the remaining magnitude is taxable to antecedently agreed conditions that subordinate to further advancement connected a standalone program of reorganization oregon a strategical transaction," the hose said successful a Dec. 15 statement. "Spirit is presently successful progressive negotiations connected each of these possibilities."

With archetypal speculation of a shutdown by aviation website The Air Current present proven to beryllium unfounded, Bloomberg is present reporting that the adjacent announcement from the hose volition impact plans to merge with chap low-cost rival Frontier Airlines.

This would people the 3rd clip successful arsenic galore years that the 2 low-cost airlines person attempted to merge. Early discussions with Frontier passim 2022 fell isolated erstwhile Spirit accepted a higher connection of a $3.6 cardinal by New York-based JetBlue Airways, but the acquisition was yet called disconnected by a national justice implicit antitrust concerns successful March 2024.

Related: Those rumors of Spirit shutting down and canceling each flights ended up being wholly false

At the commencement of 2025 and aft a important driblet successful Spirit's valuation aft it filed for bankruptcy for the archetypal clip successful November 2024, Frontier made an connection that progressive $400 cardinal successful take-back indebtedness and 19% of Frontier shares to Spirit creditors for a full valuation of $2.1 billion.

But the connection did not code the $350 cardinal successful debtor-in-possession financing Spirit would request to bridge.

At the time, then-Spirit CEO Ted Christie classified the Frontier connection arsenic "inadequate and unactionable," and talks of a merger yet fizzled out.

With its celebrated bright-yellow livery and lawsuit basal that inactive associates it with ultra-low fares, Spirit retains a beardown brand, contempt accumulating losses that marque its autarkic aboriginal progressively uncertain.

"The imaginable transaction could beryllium announced arsenic aboriginal arsenic December, said the sources, who requested anonymity," Bloomberg reports connected conversations with insiders who person cognition of the discussions.