Spirit Airlines Prepares for Bankruptcy After Merger Talks Fail, Stock Plummets 62%

Nov 12, 2024, 11:32 PM

Spirit Airlines Inc. is preparing to file for bankruptcy after merger talks with Frontier Airlines Holdings Inc. collapsed. The airline, which has been struggling with mounting losses and $2.5 billion in debt, saw its stock plummet by 62% after hours following the news. Spirit Airlines had been in discussions with bondholders to gain creditor support for a restructuring plan, but with the breakdown of the merger, the company is now considering all alternatives, including bankruptcy protection. The potential merger with JetBlue Airways Corp. was also blocked earlier by the Federal Trade Commission, leading to increased financial pressure on Spirit.