Spirit Airlines Preparing for Bankruptcy Filing
Spirit Airlines is reportedly facing the possibility of filing for bankruptcy after merger talks with Frontier Airlines broke down. The news was reported earlier today by WSJ, citing people familiar with the matter.
The budget airline, known for its ultra-low-cost fares, has been struggling with mounting debt and has been exploring restructuring options. The airline has been losing money despite strong travel demand. It has failed to report a profit in the last five out of six quarters.
Spirit said in October that it would furlough about 330 pilots and sell 23 older Airbus aircraft for $519 million as part of its efforts to cut costs and shore up its finances. However, these measures are likely insufficient to help the company address its financial issues.
