Spirit Airlines could liquidate as early as this week – CNBC, Bloomberg
Spirit Airlines could liquidate as early as this week, people familiar with the matter said anonymously. Spirit said in a statement, “We don’t comment on market rumors and speculation.” The exact timing of any possible liquidation was not immediately clear, though Bloomberg earlier reported on the potential move.
The budget carrier is still struggling to stabilize after its second Chapter 11 bankruptcy in less than a year, now facing additional pressure from rising fuel prices, which are airlines’ largest expense after labor. The news comes as the U.S. airline industry, including Florida-based Spirit, is wrapping up the busy spring break travel season.
Pilot and flight attendant unions have recently made concessions to help the airline survive. Spirit had also planned to shrink its operations and focus on high-demand travel periods and routes in an effort to exit bankruptcy as early as this spring.
The airline was profitable for years with strong margins, but post-pandemic conditions shifted sharply as wages and costs rose, customer preferences changed, and an oversupply of domestic flights pushed fares lower. Its problems were worsened by a Pratt & Whitney engine recall that grounded dozens of Airbus aircraft starting in 2023, and a blocked acquisition by JetBlue Airways two years ago after a federal judge ruled it anticompetitive.
Spirit had forecast a $252 million net profit for last year in a December 2024 court filing, but later reported losing nearly $257 million between March 13, after exiting its first Chapter 11 bankruptcy, and the end of June, before filing for Chapter 11 again less than a month later. In recent years it also tried to attract higher-spending customers with roomier seating and bundled fares that include seat assignments and baggage to better compete with larger carriers.
