Spirit Airlines edges towards bankruptcy
Spirit Airlines is reportedly preparing to file for bankruptcy protection following the collapse of merger discussions with Frontier.
According to the Wall Street Journal, the airline is in talks with bondholders over a bankruptcy plan after a hoped-for merger with the rival carrier failed to make progress.
The development marks another blow for Spirit, which has faced a series of financial and operational struggles in recent months, including rising costs, staffing shortages, and heightened competition in the budget airline sector.
The breakdown of merger talks with Frontier — a deal that could have provided much-needed financial support and market consolidation — leaves Spirit in a precarious position.
Serving over 90 destinations, Spirit operates a dense route network across the United States, Latin America, and the Caribbean. Key hubs include Fort Lauderdale, Orlando, and Las Vegas.
In recent months, Spirit has been forced to furlough hundreds of pilots as well as deferring deliveries of new Airbus A320neo aircraft.
