Spirit Aviation Holdings Inc. (OTC:FLYYQ) could reportedly halt operations within days as the creditors raise doubts about the company’s ability to clear dues.
Spirit To Liquidate?
On Thursday, CBS News reported that the airline could halt its operations within the coming days, raising questions about the passengers who might have already booked their tickets on Spirit flights. The airline had earlier filed for bankruptcy amid post Covid-19 struggles.
Spirit Airlines didn’t immediately respond to Benzinga‘s request for comment.
The war in Iran has led to a surge in fuel costs, which is said to be the reason behind the reported liquidation. According to data from Airlines for America, the price of a gallon of jet fuel on Thursday was $4.32, which, while lower than April 2nd’s $4.88/gallon price, still balloons costs for flight operators.
The troubled airline was also reportedly in talks with Frontier Group Holdings, Inc. (NASDAQ:ULCC) to explore possible merger options last December, but
Trump Approves Mergers?
Transportation Secretary Sean Duffy had earlier signaled President Donald Trump‘s approval for possible mergers between U.S. airlines amid rising jet fuel costs. He had said that Trump "loves to see big deals happen" and there was "room for some mergers in the aviation industry" in the U.S.
Meanwhile, JetBlue Airways Corp. (NASDAQ:JBLU) was in talks over a possible acquisition of Spirit Airlines, which ultimately fell through after the deal was met with antitrust scrutiny back in 2024.
However, JetBlue itself had reportedly hired advisers to evaluate how a potential merger with United Airlines Holdings Inc (NASDAQ:UAL), Alaska Air Group Inc (NYSE:ALK), or Southwest Airlines Co (NYSE:LUV) would be perceived in Washington.
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