The South-Florida based Spirit Aviation Holdings Inc.may discontinue operations within days as the creditors raise concerns regarding the company’s ability to clear dues.
The low-cost airline could be forced to liquidate its assets as soon as this week, as reported by The Wall Street Journal.
Earlier, the airline had filed for bankruptcy amid post Covid-19 struggles.
Notably, the report has yet to be officially confirmed by Spirit Airlines itself.
The situation occurred after a fuel costs surge due to the closure of Strait of Hormuz, a key waterway used to trade oil, and petrol globally.
As per data from Airlines for America, the price of a gallon of jet fuel on Thursday was $4.32, which, while is comparatively lower to the prices in the early days of April.
Several reports suggested the struggling airline was in talks with Frontier Group Holdings, Inc. to explore potential merger options in December 2025.
It is pertient to mention that transportation Secretary Sean Duffy had earlier signaled President Donald Trump‘s approval for possible mergers between US airlines amid significantly increasing jet fuel costs.
He had said that Trump "loves to see big deals happen" and there was "room for some mergers in the aviation industry" in the U.S.
Meanwhile, JetBlue Airways Corp. was in talks over a potential acquisition of Spirit Airlines, which ultimately collapsed after reaching an agreement with antitrust scrutiny back in 2024.
However, JetBlue itself had reportedly hired advisers to assess how a potential merger with United Airlines Holdings Inc, Alaska Air Group Inc, or Southwest Airlines Co would be perceived in Washington.
