Spirit Airlines cancels major Airbus order amid restructuring deal with AerCap

As part of its restructuring plan, Spirit is reducing its fleet and network. The company will cut about 40 routes and furlough around one-third of its cabin crew starting in December. Additionally, Spirit and AerCap have agreed to new lease deals for 30 A320neo-family aircraft, including both A320 and A321 models, scheduled for delivery between 2027 and 2029.

Spirit stated that this move will help reduce annual operating costs by hundreds of millions of dollars. Last week, the airline secured up to $475 million in Debtor-in-Possession financing from bondholders, with $200 million available immediately to maintain operations during downsizing efforts. Dave Davis, President and Chief Executive Officer at Spirit Airlines, said:

"We are pleased to have reached another significant milestone in our restructuring, which represents continued progress toward securing a successful future for Spirit. With these approvals in place, we are better equipped to build a stronger airline that delivers unmatched value to American consumers."

AerCap has received court approval to file an unsecured claim against Spirit worth up to $572 million. It also retains $9.7 million in cash security deposits linked to canceled leases. In August, AerCap terminated agreements for 36 new Airbus A320neo aircraft set for delivery between 2027 and 2028 and defaulted leases on 37 Airbus planes already operated by Spirit. The loss of these planes significantly impacted Spirit’s ability to operate and contributed directly to its second bankruptcy filing within a year.

In the second quarter of 2025, Spirit reported net losses totaling $246 million and disclosed it had fully used its entire $275 million revolving credit facility just to keep operations running. After emerging from Chapter 11 proceedings in March 2025 following an earlier bankruptcy filing, the carrier soon found itself again seeking bankruptcy protection as previous restructuring measures proved insufficient.

Currently operating an all-Airbus fleet of 195 aircraft—comprising both older ceo (current engine option) and newer neo (new engine option) versions—the airline intends to cut about half its fleet by removing around 100 planes. This follows a reduction of roughly one-quarter of its route network earlier this year.

Low-cost carriers like Spirit continue facing difficulties in the United States as major airlines increase their presence in affordable travel markets. United Airlines CEO Scott Kirby recently commented that he believes the low-cost carrier business model is "dead" and unpopular among customers.