KBRA Comments on Aviation ABS Exposure as Spirit Airlines Ceases Operations

NEW YORK--(BUSINESS WIRE)-- Spirit Airlines Inc. (Spirit), an ultra-low-cost carrier headquartered in Dania Beach, Florida, ceased operations May 2, 2026, after failing to secure additional funding and rescue financing. The airline has halted all flights and is winding down operations.

There are currently five KBRA-rated aviation lease ABS transactions with exposure to Spirit, ranging from 2.4% to 11.5% of portfolio value. Current debt service coverage ratios (DSCR) across these transactions remain solid, generally in the 1.4x to 1.8x range, providing structural cushion.

Following Spirit’s cessation of operations, all aircraft are expected to be returned to lessors, and repossession processes underway. This will result in near-term cash flow disruption as servicers take control of the aircraft, complete required transition work, and prepare them for remarketing. Timing will vary by aircraft, but a period of downtime is expected during repossession and transition.

Mitigating factors remain strong. The affected aircraft are primarily Airbus A320 and A321 family aircraft, which are among the most liquid narrowbody platforms globally, with broad operator demand. Lessors are expected to either re-lease the aircraft to new airlines or pursue sales, supporting recovery of aircraft values over time following transition. Any impact on lease rates or aircraft values is expected to be limited and temporary, given the relatively modest size of Spirit’s fleet compared to the global installed base.

The five KBRA-rated aviation lease ABS transactions with exposure to Spirit, based on April 2026 payment date reports, are summarized below:

KBRA will continue to monitor developments and provide updates as warranted on potential implications on our rated aviation ABS universe.

Related Publications

• KBRA Comments on Aviation ABS Exposure to Potentially Rejected Spirit Airlines’ Leases
• KBRA Comments on Aviation ABS Exposure to Spirit Airlines

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

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Alan Greenblatt, Managing Director
+1 646-731-2496
[email protected]

Michael Lepri, Senior Director
+1 646-731-3389
[email protected]

Preston Boutwell, Director
+1 646-731-2367
[email protected]

Teddy DeClue, Analyst
+1 646-731-3364
[email protected]

Business Development Contact

Arielle Smelkinson, Senior Director
+1 646-731-2369
[email protected]

Source: Kroll Bond Rating Agency, LLC

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