Spirit Airlines Faces Bankruptcy Amid Mounting Debt

The budget airline is in talks with bondholders as it grapples with $3.3 billion in debt following a failed JetBlue merger.

Spirit Airlines' stock plummeted by over 40% as reports emerged of potential bankruptcy discussions with bondholders.
The airline has struggled financially since a federal judge blocked its $3.8 billion merger with JetBlue Airways earlier this year.
Spirit is burdened with $3.3 billion in debt, including $1.1 billion in secured bonds due within a year, and is seeking to renegotiate terms.
The company has not posted an annual profit since before the COVID-19 pandemic and continues to face intense competition from larger carriers.
Spirit has implemented cost-cutting measures, such as reducing routes and furloughing pilots, but still reports significant quarterly losses.