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Roomies, Spirit Airlines is reportedly preparing to file for bankruptcy.
According to Fox Business, the airline’s most recent attempt to merge with Frontier Airlines has reportedly fallen through, with the latter company walking away from the potential plans. Subsequently, Spirit is now reportedly preparing to file for Chapter 11 bankruptcy protection.
Additionally, the outlet notes that the recent merge attempt is Spirit’s second failed try in less than two years. Per the outlet, Spirit previously attempted to merge with Jet Blue. However, the initiative was reportedly “blocked by regulators… over concerns that the deal would hurt the availability of low-cost air travel tickets.”
The repeated bad news reportedly leaves the airline “facing significant financial challenges.” This is reportedly because the “ultra-low-cost carrier” is “struggling to recover from mounting losses and debt maturities.” Per the outlet, “people familiar with the matter” have asserted that the company will file for bankruptcy “within weeks.”
Amid the company’s reported pending filing, it has reportedly sold multiple aircrafts and laid off employees in an attempt to “raise cash and revive operations.” Furthermore, within the next year, Spirit reportedly plans to reduce costs and expenses by $80 million.
Despite the company’s plans, the airline’s stock price reportedly “plummeted” by 59% on Wednesday, November 13, per Yahoo! Finance. Furthermore, the outlet adds that Spirit’s stock price has declined by 90% since the beginning of the year.
The reported news of Spirit’s potential bankruptcy filing arrives amid the airline recently making headlines. As The Shade Room previously reported, in October, one flight went viral after passengers reportedly spotted a “super rat” climbing the ceiling of the aircraft.
Furthermore, in more severe headlines, earlier this week, another Spirit Airlines flight was riddled with gunfire as it attempted to land in Haiti.
