Spirit Airlines received court approval for $475 million in debtor-in-possession financing to help stabilize operations during bankruptcy.

The U.S. Bankruptcy Court for the Southern District of New York also approved a $150 million payment from AerCap, Spirit’s largest aircraft lessor.

The big picture: The airline rejected 27 airplane leases as part of its restructuring plan. • $200 million of the financing is immediately accessible to Spirit to support ongoing operations. • Spirit has been cutting dozens of routes, planning to reduce its fleet size, and furloughing about one-third of its flight attendants to reduce costs. • The airline is negotiating with its pilots’ union, seeking approximately $100 million in additional labor cost savings.

Driving the news: Spirit’s challenges

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