Spirit Airlines (SAVE) Plans Bankruptcy After Frontier Deal Fails; Shares Fall 50%

Nov 12, 2024, 11:11 PM

Spirit Airlines is preparing to file for bankruptcy protection after merger talks with Frontier Airlines broke down. The low-cost carrier is facing mounting losses and holds $2.5 billion in debt. Spirit's stock price (NASDAQ: SAVE) plummeted after the news, falling as much as 50% in after-hours trading. The potential bankruptcy filing comes after previous attempts to merge with JetBlue for $31 per share were blocked earlier this year by the Department of Justice, citing antitrust concerns. Spirit is reportedly negotiating with bondholders to gain creditor support, and if an agreement is not reached, the company may consider all alternatives, including a possible shutdown. The airline has filed a Form 12b-25 with the Securities and Exchange Commission. Spirit's financial troubles raise concerns about potential route cancellations across the United States.