Spirit Airlines’ stock plummeted to a record low after reports surfaced that the budget carrier is exploring Chapter 11 bankruptcy protection, with over $1 billion in debt due for refinancing by October 21.
Once profitable, Spirit has struggled post-pandemic due to rising costs, changing travel patterns, and the blocked acquisition by JetBlue. The company has incurred heavy losses, including $193 million in the second quarter of 2024. Efforts to cut costs, including reduced flight capacity and pilot furloughs, have not been enough to stabilise its finances.
Spirit’s shares have fallen 90% this year.
