(Bloomberg) -- Spirit Airlines Inc. agreed to sell 23 Airbus SE aircraft for $519 million, giving the budget carrier a much-needed cash boost as it nears a possible bankruptcy filing.
Net proceeds from the sale, combined with eliminating the plane-related debt from its balance sheet, will boost Spirit’s liquidity by about $225 million through year-end 2025, according to a regulatory filing Thursday. The airline plans to deliver the planes through February to the buyer, GA Telesis LLC.
The deal comes as Spirit holds talks with Frontier Group Holdings Inc. about filing for bankruptcy to facilitate a takeover by the rival discount carrier, Bloomberg reported Wednesday. Spirit is facing a liquidity crisis after its attempt to merge with JetBlue Airways Corp. was blocked on antitrust grounds, and subsequent efforts for a rescue by creditors were unsuccessful.
Spirit has sought to restructure its debt and said Thursday that it’s in “active and constructive discussions” with holders of senior secured notes due 2025 and convertible senior notes due 2026.
The carrier also said it’s taking steps to cut costs, identifying about $80 million of annualized reductions it plans to begin carrying out early next year. Those will be driven primarily by a reduction in workforce in line with a planned pullback in flying.
Spirit shares rose 10% as of 5:55 p.m. after regular trading in New York. Spirit tumbled 85% this year through Thursday’s close.
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