Spirit Airlines Nears Bankruptcy, Creditors May Approve Equity 'Cancellation:' Here's What It Means For Investors As Shares Fall With A Thud

Shares of Spirit Airlines plunged by 62.73% in after-hours and closed nearly 5.29% lower at $3.22 apiece on Tuesday after the company failed to file its earnings for the quarter ended September 2024. The discount airline in a filing late Tuesday, said that it is in talks with its creditors to carve out a restructuring plan which could "lead to the cancellation of the Company's existing equity."