Shares of Spirit Airlines surged as much as 46% on Monday after the ultra low-cost carrier reached a deal with its credit card processor to extend a debt refinancing deadline by two months until Dec.

Spirit Airlines gave itself some financial breathing room by borrowing $300 million and reaching a new deadline for refinancing a large portion of its debt. The Dania-Beach-based airline posted

Spirit Airlines has been given a two-month extension to refinance about $1 billion of its debt, which was due on Monday. The largest Florida-based airline has been renegotiating $1 billion of its bonds as its stock price plummets.

Spirit Airlines said on Friday it has reached an agreement with its credit card processor to extend a debt refinancing deadline by two months until Dec. 23.

Some Wall Street analysts speculated that if Spirit wasn’t able to reach refinance or extend the deadline on a credit card processing agreement, then bankruptcy could be on the table for the beleaguered carrier.

Spirit Airlines extends its debt deadlines amid bankruptcy speculations, while JetBlue's founder argues that Frontier would have been a better match after their failed merger.

Key Takeaways Spirit Airlines shares surged higher Monday morning as the carrier said it extended a deadline for debt refinancing with Visa and Mastercard.The discount airline also said it has used all of a $300 million revolving credit line,

Spirit Airlines (SAVE) surges 23% in premarket trading after landing a debt-refinancing extension with its credit card processor.

Shares in Spirit Airlines (NYSE:SAVE) surged by more than 37% in premarket US trading on Monday after the budget carrier announced that it had reached an agreement with its credit card processor to extend a debt

Shares of Spirit Airlines (SAVE) are up 30% afterhours at $1.92 as the company states in an 8-K filing: “As previously disclosed, on May 21, 2009,