Spirit Airlines has won a crucial battle in its Chapter 11 bankruptcy, locking in approval to borrow up to $275 million in emergency funds as it prepares to cut leases on dozens of jets and exit several U.S. markets.

On Monday, U.S. Bankruptcy Judge Sean H. Lane in New York gave interim approval for Spirit to tap cash from its revolving credit facility, revenue earned during the case, and foreign accounts. The judge described access to liquidity as “obviously necessary” for the airline’s survival.

A $275M Lifeline to Keep Planes Flying

Spirit’s attorney Darren S. Klein told the court that the freed-up liquidity represents “unencumbered” funds, separate from cash pledged as collateral for secured lenders. For now, Spirit agreed not to touch those restricted accounts but left open the possibility of requesting debtor-in-possession financing later.

This infusion of cash will allow the Florida-based carrier to keep operating while it decides which aircraft leases and contracts to reject. Spirit currently leases 214 Airbus planes but plans to shed dozens of them to stabilize its finances.

Fleet Cuts, Market Exits, and a Leaner Spirit

Over the next ten months, Spirit will focus on trimming its fleet and paring down its route map. The airline has already announced it will abandon service in San Diego, Salt Lake City, Portland, and other cities, doubling down instead on its strongest-performing hubs.

These moves mark part of Spirit’s strategy to emerge from its second Chapter 11 in less than a year as a leaner, more sustainable airline. Once known almost exclusively for its bare-bones, ultra-low-cost model, Spirit has recently tried wooing more affluent travelers with “premium” seating options.

A Storm of Challenges Grounded Spirit

Spirit’s fresh descent into bankruptcy on Aug. 29 came less than six months after its previous Chapter 11 exit. Chief Financial Officer Fred Cromer said the filing became inevitable when its largest lessor issued a default notice on aircraft leases just days earlier.

The airline has also been battling weak passenger demand, intensified by a glut of capacity in the market. Compounding the crisis, Spirit was forced to ground 38 aircraft due to faulty geared turbofan engines manufactured by Pratt & Whitney.

These headwinds slammed Spirit’s bottom line. The airline reported just $1.02 billion in Q2 revenue—a steep 20% drop year-over-year—while listing between $1 billion and $10 billion in debt in its bankruptcy petition.

A Fight for Survival

Spirit is represented by Davis Polk & Wardwell LLP, with attorneys Marshall S. Huebner, Darren S. Klein, Christopher S. Robertson, Moshe Melcer, and Noah Z. Sosnick leading its restructuring efforts.

The low-cost carrier, once synonymous with bargain fares and no-frills flying, now faces the fight of its corporate life. If Spirit can shed excess aircraft and sharpen its focus on profitable markets, its Chapter 11 gambit may give it just enough lift to survive the turbulence.