Spirit Airlines nears bankruptcy amid debt crisis

Spirit has also reduced its network significantly as it struggles to profit from many routes, focusing instead on those generating more revenue. Unlike other U.S. airlines, Spirit has not yet released its Q3 financial results due to ongoing negotiations with bondholders. Skift quotes the airline stating: “The negotiations, with a supermajority of the Noteholders, have remained productive, have advanced materially and are continuing in the near term, but have also diverted significant management time and internal resources from the Company’s processes for reviewing and completing its financial statements and related disclosures.”

Several factors have contributed to Spirit's precarious position. The airline admitted difficulties maintaining a healthy balance sheet due to weak fares and lower-than-expected non-ticket revenue per passenger. Additionally, competition within the crowded U.S. aviation market has posed challenges for Spirit as it contends with both full-service legacy carriers like United, American, and Delta Air Lines and low-cost competitors such as Southwest.

A failed merger attempt with JetBlue and aircraft groundings caused by engine issues further exacerbated Spirit's current financial woes.