Overview
- Spirit, which drew fresh headlines Wednesday from Bloomberg and CNBC, was said to be at risk of winding down as soon as this week.
- Lenders told a New York bankruptcy court the March restructuring is not feasible at today’s fuel prices and said liquidation is being evaluated.
- Jet fuel prices roughly doubled after the Iran conflict began on Feb. 28, and J.P. Morgan estimates the surge could add about $360 million to Spirit’s costs against $337 million in year-end cash.
- The airline’s plan filed in March targeted an early-summer exit from Chapter 11 with a downsized fleet of about 76–80 Airbus jets and a network focused on Fort Lauderdale, Orlando, Detroit, and New York.
- Spirit continues to operate flights and sell tickets, and it declined to comment on what it called market rumors, while travelers with future bookings may need to seek credit card chargebacks if flights are not provided.