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Benzinga
  • 9 hours ago
Spirit Airlines could begin liquidation as early as this week as it emerges from its second bankruptcy in less than a year, now facing higher fuel costs on top of existing financial pressures. Spirit's decline followed rising costs, shifting demand, a Pratt & Whitney engine recall that grounded aircraft in 2023, and a blocked merger with JetBlue. The airline reported a nearly $257M loss after exiting its first Chapter 11 before filing again weeks later.
Transcript
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Spirit Airlines could begin liquidation as early as this week, according to CNBC.
00:07The airline is emerging from its second bankruptcy in less than a year
00:10and now faces higher fuel costs, its largest expense after labor.
00:15Spirit said it does not comment on market rumors or speculation.
00:18The update comes as the industry wraps up the spring break season.
00:22Labor unions made concessions in recent months.
00:25Spirit's performance weakened after the pandemic as costs rose,
00:28demand shifted, and domestic flight supply increased.
00:32A Pratt & Whitney engine recall grounded aircraft starting in 2023,
00:36and a federal judge blocked its planned merger with JetBlue Airways.
00:39The airline reported a nearly $257 million loss after exiting its first Chapter 11
00:45and filed again weeks later.
00:47For all things money, visit Benzinga.com.
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