Spirit Airlines is on the brink, reportedly advancing toward a Chapter 11 bankruptcy filing. While still in talks, the airline has not yet formally declared bankruptcy, though mounting losses, debt challenges, and failed merger discussions have taken a toll.
Initially hoping for a merger with Frontier Airlines, Spirit’s financial lifeline fell through, amplifying its challenges. Now, in a bid to stay afloat, Spirit has been cutting jobs, selling aircraft, and extending debt deadlines. But despite these measures, the airline’s stock reflects the crisis—down over 60% in recent sessions and nearly 80% for the year.
These financial woes are likely to impact customer loyalty as travelers steer clear, worried about potential cancellations or disruptions. Spirit’s future remains in doubt as it scrambles for stability, with its Chapter 11 filing potentially looming ahead.
🚨BREAKING: Spirit Airlines, known for its cheap flights prices and overpriced baggage fees and other services, is preparing to file for bankruptcy. pic.twitter.com/8USgzG09R4
— R A W S A L E R T S (@rawsalerts) November 13, 2024
I wonder what happened pic.twitter.com/WipMmsGH1W
— Natalia Soria (@natysh16) November 13, 2024
Guess who not bailing them out ?
👇🏻👇🏻👇🏻 pic.twitter.com/N1Y8OyMgqT
— RedPillPatriot (@_RP_Patriot1776) November 13, 2024
Sources:
- Investopedia: Spirit Airlines Stock Sinks on Report Frontier Merger Talks Break Down
- MSN Money: Spirit Airlines preparing for bankruptcy amid failed merger and financial turmoil
- Yahoo Finance: Spirit Air nears bankruptcy that would wipe out shareholders
- Skift: Spirit Airlines in Advanced Talks Over a Bankruptcy Filing: WSJ
- Reuters: Spirit Airlines continues ‘constructive talks’ with creditors