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Spirit Airlines receives bankruptcy funding of $100 Million

Spirit Aviation announced on Monday that it had secured $100 million in bankruptcy financing as the struggling?carrier worked on a restructuring plan.

Spirit Airlines' parent company filed for bankruptcy a second-time in August after struggling to cope with shrinking cash reserves and mounting losses.

Spirit Airlines has been cutting jobs, trimming routes, and reducing operations as part of its broader cost-cutting strategy. The company has already withdrawn from 14 airports and refused leases for over 80 aircraft.

The ultra-low cost carrier announced on Monday that all operations, including flights and ticket sales, will continue as normal.

Spirit can access $50 million right away, and the rest is subject to restructuring discussions or a possible deal.

The?carrier didn't disclose the source of?funding.

The Aviation-focused publication, The Air Current, reported on Friday rival airlines are preparing to capitalize on Spirit Airlines' routes if it is forced shut down. (Reporting and editing by Sahal Muhammad in Bengaluru, with Nathan Gomes reporting from Bengaluru)

(source: Reuters)