Surging fuel prices could lead to the end of Spirit Airlines.
The South Florida-based airline could liquidate as early as this week, according to people familiar with the situation who spoke to Bloomberg anonymously.
The budget carrier has struggled to get back on its feet after its second bankruptcy in less than a year — and now it has the added challenge of skyrocketing fuel prices amid the war in Iran.
The situation is “fluid” as the company continues its ongoing talks with its creditors, and sources noted that the plans could still change.
Bloomberg reported on the potential liquidation Wednesday, and the matter had not yet been made public and discussions are currently private.
“We don’t comment on market rumors and speculation,” Spirit said in a statement, per CNBC.
The exact day the carrier could begin liquidation wasn’t clear.
Spirit, which is still operating, was anticipated to exit bankruptcy by this summer after they reached an agreement with creditors to cut billions of dollars in debt and reduct the cost of its fleet.
The carrier filed for Chapter 11 bankruptcy protection in August 2025 for the second time in under a year.
Before they filed for the first bankruptcy, Spirit agreed to be acquired by JetBlue Airways, but a federal judge blocked the merger in 2024 on antitrust gounds.
Later, Frontier and Spirit reignited talks to merge in 2025, though it didn’t pan out.
The news comes as airlines are dealing with jet fuel prices due to the war in Iran and the closure of the Strait of Hormuz, a passageway for oil.
The conflict has led to airlines increasing prices in different areas, especially checked baggage fees.
