Spirit Airlines Cuts Deal to Gain Cash, Reduce Fleet Size (1)

Spirit Aviation Holdings Inc. signed a tentative deal with its biggest aircraft lessor to give back planes it is not flying, reduce an order it previously placed for new aircraft and collect cash the bankrupt airline can use to reorganize.

The agreement with AerCap Ireland Ltd is the first major settlement Spirit has achieve since it filed for bankruptcy at the end of August. Spirit did not release the amount of cash it is collecting, or how many aircraft are involved in the proposed deal, which must be approved by the federal judge overseeing the company’s insolvency case.

Spirit leases ...