Those Spirit Airlines shutdown rumors ended up being totally false
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Over the weekend, rumors that Spirit Airlines would crash before Monday morning came to a head.The low-cost airline had filed for bankruptcy for a second time in August 2025 and is struggling to restructure its finances in a way that will get it on even some semblance of a path toward profit; it recently furloughed or downgraded more than 500 pilots and is expected to post a loss of at least $804 million before the year is over.In speculation that was then quickly picked up by many other outlets, aviation website The Air Current reported that competitors were closely watching the Fort Lauderdale-based airline for a sudden shutdown of operations over the weekend.Spirit responded to the rumors with a Sunday statement saying that "there is no truth to any rumors that we are preparing to cease operations." On Dec. 15, the airline also announced that it secured a $100 million short-term financing lifeline from investors. $50 million in debtor-in-possession is available immediately to put toward operations while the other $50 million is contingent on continuing to make progress on a "standalone plan of reorganization" or other major step toward improving its situation."Spirit is currently in active negotiations on each of these possibilities"Spirit is currently in active negotiations on each of these possibilities," the airline said in a statement while CEO Dave Davis added that the airline remains "grateful to our lenders for continuing to support Spirit's transformation" and "continue[s] to provide high-value travel options, which benefit American consumers whether they fly with us or not."This update is the third part of a $450 million DIP financing plan that was approved by a bankruptcy court judge in October. The agreement involved aircraft lender AerCap agreeing to pay Spirit $150 million and giving up plans to lease 27 primarily Airbus A320 planes as part of wider cost-cutting measures.Related: American Airlines joins the Spirit Airlines bankruptcy case"These approvals mark an important milestone in the Company's ongoing Chapter 11 restructuring to position Spirit for the future," Spirit said at the time. Spirit Airlines has struggled to bring down costs while still running the routes it needs to get out of bankruptcy.Image source: Veronika Bondarenko Flights, new ticket sales to continue uninterrupted as Spirit secures new fundingDebtor-in-possession financing is a special type of funding provided to companies in financial distress that is given out by investors who have an interest in not wanting to see the company shut down. In any liquidation or payback plans, it also takes precedence over other debts owed before it was issued.More Travel News:Major airline launches surprising flight between Las Vegas and ParisUnited Airlines CEO gives stark warning on Olympic GamesThe highest rooftop in Barcelona is in a surprising placeUS government issues sudden warning on Switzerland travelOn the passenger side, this means that flights and ticket sales can continue without interruption as planned as both investors and travelers wait for new announcements — despite reassurances and multiple rounds of new financing, some are more skeptical than others of Spirit's ability to emerge from two bankruptcies without a last-minute buyout or other Hail Mary.At the start of December, American Airlines asked the bankruptcy court in the Southern District of New York for approval to receive all of Spirit's operating reports, reorganization plans and liquidation statements as it eyes its gate slots in Chicago.Related: Airline cancels all flights and travelers stranded, no bankruptcy