The aviation industry is slowly recovering from the severe impact of the COVID-19 pandemic. During this period, many airlines faced financial difficulties, with some filing for bankruptcy or ceasing operations altogether. However, as travel demand has rebounded, airlines have gradually restored their workforce and operations to pre-pandemic levels, leading to improved profitability.
Spirit Airlines has experienced financial challenges recently. The ultra-low-cost carrier's unsuccessful merger attempt with JetBlue Airways highlighted its poor profits over the past years. Rumors suggest that Spirit might file for bankruptcy unless it finds a solution soon.
Mergers have also played a significant role in shaping the financial landscape of US airlines. Alaska Airlines' recent acquisition of Hawaiian Airlines for nearly $2 billion followed reports of Hawaiian's debt issues. Similarly, American Airlines avoided bankruptcy in 2013 through a reverse merger with US Airways.