Report: Spirit Airlines Preparing to File Bankruptcy Within Weeks

Spirit Airlines, the ultra-low-cost carrier, is expected to file for bankruptcy within weeks.

The Wall Street Journal reported Monday that Spirit is preparing to file for bankruptcy protection after a last-ditch merger effort with Frontier Airlines failed.

Despite high travel demand and record profits for some competitors, Spirit has struggled since the post-pandemic reopening. It furloughed pilots in January, sold part of its fleet, and cited “intense” competition as the cause of disappointing earnings.

The airline had hoped a merger with Frontier would secure its future. Spirit initially announced plans to merge with Frontier in February 2022, but shareholders later rejected the deal. This recent attempt marks Spirit’s second failed merger; JetBlue terminated its own merger plans with Spirit in March 2024, citing likely regulatory issues.

According to its annual reports, Spirit has not posted a net profit since 2019, despite growing its passenger numbers, fleet, and workforce. Other low-cost carriers, like Frontier, have managed to grow earnings and revenue over that same period.

The airline’s model relies on ultra-low base fares across U.S., Caribbean, and Latin American routes, by stripping out all ancillary items like seat selection, bags, and more, and having flyers pay for them separately. That includes charging $2 for printing boarding passes at airport kiosks.