Financially struggling Spirit Airlines may be heading toward liquidation, with CNBC and Bloomberg reporting a potential sell-off could begin as early as this week.
Spirit declined to comment on the reports.
Struggles after bankruptcy
The low-cost carrier filed for bankruptcy for a second time last August, citing weaker travel demand and rising costs. It had been aiming to emerge from bankruptcy in late spring or early summer.
As part of its restructuring, Spirit cut dozens of routes and scaled back its schedule in late 2025 in an effort to reduce costs and streamline operations.
The company also worked to shrink its debt load — targeting a reduction from roughly $7.4 billion to about $2 billion — while cutting lease obligations.
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Spirit furloughed hundreds of pilots in both 2024 and 2025 to save money, but many of those pilots left the airline altogether, leaving the company short-staffed.
In March, Spirit attempted to recall about 500 pilots, but acknowledged many had already moved on, complicating efforts to rebuild ahead of the busy spring travel season.
Fuel costs add new pressure
Now, rising jet fuel prices tied to the U.S. war in Iran are adding to the airline’s challenges. Fuel and labor remain the industry’s two largest expenses, and Spirit is not alone in facing those pressures.
The International Energy Agency warned Thursday that Europe’s airline industry may have just roughly six weeks of jet fuel supply remaining, as disruptions tied to the Strait of Hormuz continue to affect global energy flows.
IEA Executive Director Fatih Birol told The Associated Press the situation could become “the largest energy crisis we have ever faced,” warning that prolonged disruption would push up both fuel and electricity costs worldwide.
Claudio Galimberti, chief economist at Rystad Energy, told CNBC that airline fuel supply now largely depends on how much oil continues to move through the Strait.
Broader airline impact
European carrier EasyJet says bookings later this year are down about 2% compared to 2025, citing unrest in the Middle East and rising fuel costs.
The airline also reported fuel costs jumped by $34 million in March alone and warned of continued volatility heading into the summer travel season.
