Major Airline Explores Refinancing Options After Biden Admin Suit | Airlines

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Spirit Airlines is considering refinancing options to address its substantial debt after a suit from the Biden administration led a federal judge to halt a planned acquisition of the company, the Daily Caller News Foundation has learned.

The budget airline owes around $1.1 billion in debt that is due by September 2025, having already sold more than two dozen planes in early January, immediately leasing them back, to pay down another $465 million in debt that was previously held, according to The Wall Street Journal. The consideration over refinancing from Spirit follows a federal judge on Tuesday blocking a proposed $3.8 billion acquisition of the company by JetBlue Airways after an antitrust lawsuit from the Department of Justice (DOJ).

(RELATED: Cloud Hangs Over Commercial Real Estate As Trillions In Debt Set To Come Due)

Spirit has denied that it is exploring restructuring options, saying instead that it was looking for ways to refinance its debt, according to a person familiar with the matter. “Spirit is not pursuing nor involved in a statutory restructuring,” a spokesperson said in a statement to the DCNF.

“We are not (yet) predicting an immediate [Spirit Airlines] chapter 11 [bankruptcy] filing, just an acknowledgment that we cannot reasonably identify a viable return to profitability any time soon,” analysts at JPMorgan Chase wrote following the judge’s action on Tuesday, according to the WSJ.

Spirit has suffered increasing losses in the last three years as other competitors dropped their prices, snatching customers from the budget airline, according…

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