Shares of Spirit Airlines jumped after the budget carrier received a debt-refinancing extension.
The stock gained 41%, to $2.07, in after-hours trading Friday. Shares ended the regular session at $1.47, down more than 91% this year.
The airline was facing a Monday deadline to refinance more than $1.1 billion in debt, otherwise its credit-card-processing agreement wouldn't be extended next year. That deadline has been pushed back to late December, it said in a securities filing.
The company also said it has borrowed the entire $300 million available under a credit line.
Spirit, which has been struggling with losses and declining revenue as it aims to address maturities with its $3.3 billion debt load, has been in discussions with bondholders over the terms of a potential bankruptcy filing in the wake of its failed merger with JetBlue Airways, The Wall Street Journal reported earlier this month.
A federal district court judge in January struck down a $3.8 billion merger between JetBlue and Spirit, citing the combination would have reduced competition and harmed travelers who rely on Spirit's low fares. The two airlines later called off the deal, saying they likely couldn't overcome the legal and regulatory hurdles.
JetBlue shares fell 7%, to $7.49, in post-market trading.
Write to Connor Hart at connor.hart@wsj.com
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