Spirit Airlines reaches tentative deal with AerCap to reject Airbus leases amid restructuring

The airline has already received court approval to reject 12 airport lease agreements and 19 ground handling agreements. Additionally, Spirit secured immediate access to $120 million in liquidity as part of these recent changes.

Spirit's financial difficulties have resulted in significant cost-cutting measures. The company has furloughed hundreds of pilots and about 1,800 flight attendants while reducing flights across its network by roughly 25%. While some other low-cost carriers like JetBlue and Southwest Airlines have also faced challenges in recent years, industry observers note that Spirit's position is especially precarious compared to its peers.

Industry-wide issues such as higher fuel costs due to longer routes and ongoing problems with Pratt & Whitney PW1100G engines on A320neo family jets have contributed further pressures on hybrid and budget airlines like Spirit, Frontier, and JetBlue. Unlike competitors such as Allegiant Air that avoid direct competition with legacy carriers, Spirit's business model puts it head-to-head with larger airlines on many East Coast routes—often connecting affluent areas with vacation destinations.

Brand perception has also been identified as a challenge for Spirit. While European carrier Ryanair has found success by embracing its reputation as an ultra-low-cost option, analysts suggest that the US market may not be as receptive to similar strategies due to differing consumer expectations.

As of now, among US hybrid or budget airlines ranked by fleet size (according to Planespotters.net), Southwest Airlines leads with 798 aircraft followed by JetBlue (279), Spirit (195), and Frontier (165).