A STRUGGLING US budget airline may get a lifeline after winning court approval for nearly $500 million in emergency funding.

The move comes as the carrier races to stabilize operations following its second bankruptcy in less than a year.

New York - US Bankruptcy Court approved $475 in debtor-in-possession financing Friday, alongside a $150 million payment from AerCap, its largest aircraft lessor.

Spirit Airlines also gained approval to reject 27 airplane leases, with $200 million immediately available to keep the airline flying, CNBC reported.

The cash injection comes as Spirit slashes costs across the board, including cutting dozens of routes and planning to reduce its fleet.

The airline last month said it would furlough about a third of its flight attendants, while negotiating with its pilots' union for an additional $100 million in cost reductions.

CEO Davis called the funding a "significant milestone" and said it marked "continued progress toward securing a successful future for Spirit."

Spirit's troubles have piled up over recent years.

An engine recall, a failed acquisition by JetBlue, rising labor and operational costs, and changing consumer preferences all contributed to its current crisis.

The airline has spent over a year trying to move beyond its image as a no-frills, cheap-ticket carrier.

Spirit has introduced roomier seats and additional fare packages, moving away from the a la carte model of seat selection and cabin baggage fees that once defined its brand.

Despite these changes, the airline has struggled to attract passengers willing to pay higher fares.

The bankruptcy filings mark the second time Spirit has sought court protection since November, raising concerns about the future of the low-cost carrier.

Industry analysts warn that its financial troubles could continue if broader cost pressures and market challenges persist.

The funding approval comes after a failed merger attempt with JetBlue, which left the airline with a rusting fleet and mounting debt.

Spirit has increasingly focused on restructuring its operations to survive, rather than expand aggressively.

Labor costs remain a key concern, with the airline negotiating hard with unions to prevent further disruptions.

The carrier's fleet downsizing is part of a broader effort to reduce overhead and match capacity with declining demand.

Spirit's struggles reflect wider challenges in the airline industry, including rising fuel prices, staffing shortages, and shifts in passenger preferences.

The emergency funding will allow Spirit to maintain essential operations, while giving it time to implement cost-saving measures and restructure debt.

For passengers, this could mean continued service on select routes, though the network will be significantly smaller.

Despite the setbacks, Spirit's management remains optimistic that the restructuring measures will stabilize the airline in the months ahead.

Bankrupt US airline could get soft landing with $500m boon after failed merger