Spirit’s bankruptcy uncertain as jet fuel prices soar
FILE-A Spirit Airlines plane takes off at Los Angeles International Airport (LAX) on June 1, 2023 in Los Angeles, California. (Photo by Mario Tama/Getty Images)
Mounting fuel prices have made Spirit Airlines' push to ascend from bankruptcy this year more complicated.
Citing individuals familiar with the situation, The Wall Street Journal reported that Spirit Airlines is in talks with creditors looking at options like a possible liquidation of the airline.
Spirit reached an agreement with creditors prior to the U.S. and Israel launching airstrikes against Iran.
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Jet fuel prices have doubled in the weeks after the Iran war began, and Spirit Airlines stated in court documents in April, obtained by The Wall Street Journal, that it expects fuel price unpredictability to return to normal rates by May.
Fuel is a substantial expense for airlines as they deal with higher costs. This has resulted in airlines like Delta and United considering raising the cost of flight tickets to offset exorbitant costs.
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On the flip side, Spirit has lowered its fleet and stopped using travel routes that don’t yield profits, while recently raising airfares raised fares. The Wall Street Journal noted, referencing JPMorgan analysts, that Spirit’s costs would skyrocket by $360 million if jet fuel prices continue to climb for the rest of 2026.
Spirit Airlines struggles
Dig deeper:
Spirit Airlines filed for bankruptcy in August 2025 following two failed mergers in less than two years. The most recent merger attempt was with Frontier Airlines and then with JetBlue.
The airliner also filed for bankruptcy in 2024 and announced that same year it was planning to sell off multiple aircraft and lay off workers as it attempted to revive operations and raise revenue.
The backstory:
The organization started out as a long-haul trucking company in 1964 before shifting to aviation in 1983. The company offered travel packages to popular destinations under the name Charter One Airlines and rebranded to Spirit in 1992.
Spirit Airlines became popular with budget-conscious customers willing to forgo features like checked bags and seat assignments.
The Source: Information for this story was provided by The Wall Street Journal and previous FOX Local reporting. This story was reported from Washington, D.C.