Spirit Airlines Prepares for Bankruptcy, Stock Plummets 42% After Merger Talks Fail

Nov 12, 2024, 10:36 PM

Spirit Airlines Inc. is preparing to file for bankruptcy protection after merger talks with Frontier Airlines Holdings Inc. broke down, according to sources familiar with the matter. The airline's stock, listed under the ticker $SAVE, experienced a significant drop of 42% following the news. The collapse of the merger talks has left Spirit Airlines in a precarious financial position, potentially leading to the cessation of operations. Earlier this year, the Department of Justice (DOJ) blocked a proposed merger between Spirit and JetBlue Airways Corp., which would have provided Spirit with a lifeline.