Spirit Airlines could liquidate as early as this week, sources say
CNBC • • business
Key Points:
- Spirit Airlines is facing potential liquidation as early as this week amid ongoing financial struggles, according to anonymous sources familiar with the situation.
- The budget carrier, which recently emerged from its second bankruptcy in under a year, is grappling with rising fuel costs, its largest expense after labor, compounding its challenges.
- Efforts to stabilize included concessions from pilot and flight attendant unions and plans to downsize while focusing on high-demand routes, but these measures have not prevented continued losses.
- Spirit's difficulties intensified after a Pratt & Whitney engine recall grounded several aircraft in 2023 and a federal judge blocked its acquisition by JetBlue Airways, limiting its ability to compete with larger carriers.
- Despite forecasting a $252 million net profit in 2023, Spirit reported a $257 million loss within months after exiting bankruptcy, leading to its second Chapter 11 filing earlier this year.
