Spirit Airlines Could Shut Down This Week, Sources Say
Spirit Airlines could shut down operations as early as this week, according to sources who spoke to CNBC. The budget airline is struggling with its second bankruptcy in less than a year and rising fuel costs.
Spirit Airlines could liquidate and stop flying as early as this week, sources familiar with the matter told CNBC. The budget carrier has been fighting to survive its second bankruptcy in less than a year.
The airline is facing major challenges beyond its financial troubles. Fuel prices have spiked recently, creating an added burden for Spirit. Fuel is typically an airline's biggest expense after worker pay.
Spirit's problems started two years ago when its planned merger with JetBlue Airways fell through. Since then, the low-cost carrier has struggled to regain its financial footing.
The airline declined to comment on the reports. "We don't comment on market rumors and speculation," a Spirit spokesperson said.
Spirit is one of America's few remaining budget airlines, known for its bare-bones service and extra fees for everything from carry-on bags to seat selection. The airline serves millions of price-conscious travelers each year.
If Spirit shuts down, millions of passengers could lose their cheap flight options and face higher airfares. Travelers with Spirit tickets or credits could be left stranded or lose their money entirely.
Watch for an official announcement from Spirit Airlines about its future operations by week's end.
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