Skip to playerSkip to main content
Benzinga
  • 4 hours ago
Spirit Airlines warned that surging jet fuel prices are threatening its bankruptcy exit plan. The airline based its turnaround on fuel costs of $2.24 per gallon but prices reached ~$4.24 by mid-April. JPMorgan warned sustained high prices could push 2026 operating margin to -20% and add $360M in costs. Spirit is seeking approval for a second restructuring and plans to cut its fleet to 76 aircraft.
Transcript
00:00It's Benzinga bringing Wall Street to Main Street.
00:02Spirit Airlines said rising jet fuel prices are pressuring its bankruptcy exit plan,
00:08according to Reuters. The ultra-low-cost carrier based its turnaround on fuel costs of about $2.24
00:14per gallon in 2026 and $2.14 in 2027, but prices reached about $4.24 by mid-April.
00:23J.P. Morgan said sustained high prices could push 2026 operating margin to about negative 20%
00:30and add $360 million in costs. Spirit warned that higher fuel costs could impact results and raise
00:37liquidation risk if agreements with creditors fail. The airline is seeking approval for a second
00:42restructuring and plans to cut its fleet to 76 aircraft. Spirit declined Reuters' request to
00:47comment for this story. For all things money, visit Benzinga.com.
Comments