Cash strapped Spirit Airlines has been given a temporary lifeline.
The low cost carrier secured a two-month extension of its debt refinancing.
It sparked a surge in its share price, soaring by as much as 65%.
The US Bank National Association deal was set to expire today.
The airline now has until December 21 to refinance the $1.1 billion of loyalty bonds.
Spirit said in a filing it is still in ‘active and constructive discussions’ with bondholders about the maturities.
The company has posted losses for five of the last six quarters and a proposed takeover by JetBlue was recently blocked.
Even with the share price bump, its value is still down about 90% this year.
Spirit has taken drastic steps to cut costs – downgrading some pilots and offering flight crew unpaid voluntary leave.
It has paused new recruitment.
