(Gray News) — Spirit Airlines is on the verge of liquidation due to rising fuel prices, according to multiple reports.
Sources told CNBC that Spirit could liquidate as early as the next few days.
In October, the budget-friendly airline filed for bankruptcy for the second time in less than a year. But now, rising fuel prices have reportedly put added pressure on Spirit’s financial situation.
FILE – A Spirit Airlines 319 Airbus approaches Manchester Boston Regional Airport for a landing, Friday, June 2, 2023, in Manchester, N.H.(Charles Krupa | AP Photo/Charles Krupa, File)
Reuters reported that Spirit built its restructuring plan on fuel costs averaging about $2.24 a gallon in 2026 and $2.14 a gallon in 2027. However, jet fuel prices are currently around $4.24 a gallon, roughly double that amount.
In its latest annual report, Spirit said the recent increase in fuel prices would have an “immediate and substantial negative impact” and warned of possible liquidation.
Spirit has not confirmed reports that it could liquidate as early as the next few days. Spirit told CNBC, “We don’t comment on market rumors and speculation.”
Bloomberg was the first to report on Spirit’s potential liquidation, also citing fuel prices.
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