Spirit Airlines Finds Possible Buyer After Latest Bankruptcy

Spirit Airlines is reportedly in talks about a potential purchase by investment firm Castlelake, according to several news outlets. 

CNBC and Reuters have both reported the news. The airline has been beleaguered by financial struggles following the pandemic, and declared Chapter 11 bankruptcy this past August, laying off hundreds of pilots and furloughing at least 1,000 flight attendants. 

It secured over $475 million in investment during bankruptcy, and had a restructuring plan that was approved by the court. 

This past October, Spirit announced it expected a return to profitability in 2027, which would be the airline’s first year of profit in eight years. 

Yet the news about the potential sale comes as a surprise to many, since the air carrier was in talks with Frontier about a potential merger in December. 

Castlelake manages approximately $33 billion in assets, including a new lending entity for airlines called Merit AirFinance, which provides debt financing to airlines. 

---

For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.

Topics From This Article to Explore