A POPULAR budget airline is rumored to ‘collapse’ this week, with competitors believing it will cease all operations.
Competitors are preparing to help rescue the thousands of passengers who would be left stranded should the rumored demise actually occur.
Spirit Airlines is at an “imminent risk” of shutting down, according to a report by The Air Current.
The airline had already filed for bankruptcy a second time in August, less than one year after filing in November 2024.
By the time of its first bankruptcy filing in 2024, the airline had lost $2.5 billion since 2020.
Spirit Airlines now carries $2.5 billion in long-term debt, the majority of which is due in five years.
When filing for bankruptcy, the airline stated that all flight operations would remain the same as it worked on restructuring the company, according to NPR.
In March, Spirit Airlines CEO Dave Davis said, “It has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future.”
A new report from The Air Current states that the airline needs $100 million in financing to stay afloat.
If Spirit is unable to secure financing by December 13, it may be forced to end all operations abruptly.
Should all operations shutdown, it will affect the thousand of flights booked through December 20.
Air Current reported that Spirit’s competitors are bracing to assist stranded passengers amid cancelations.
“At least two major U.S. airlines are planning for a possible demise of the struggling low-cost carrier as early as Saturday,” according to The Air Current.
The airlines reportedly already have a rescue plan for stranded flyers.
“Each is accelerating plans to provide a schedule to backfill what would be Spirit’s cancelled flights, along with rescue fares for Spirit customers who would be stranded by an abrupt end to its flying heading into one of the busiest travel periods of the year.”
Despite the report, Spirit Airlines said that it’s just a “rumor.”
Source : https://www.the-sun.com/travel/15637215/spirit-airlines-flight-cancelations-bankruptcy/
