Overview
- Multiple outlets reported late Wednesday that creditors are weighing a liquidation within days as negotiations continue in bankruptcy court.
- Jet fuel prices tied to the Iran conflict have roughly doubled to about $4.88 a gallon, blowing a hole in the cost assumptions behind the carrier’s planned summer exit from Chapter 11.
- Lenders have filed objections to the restructuring plan, arguing it does not hold up at today’s fuel costs and could lead to a quick default.
- Analysts estimate sustained prices could add about $360 million in expenses this year, more than Spirit’s reported $337 million cash at year-end, increasing the chance of a shutdown.
- Spirit is still operating and selling tickets, but customers with future bookings may need credit-card chargebacks if flights stop, and competitors could acquire its planes and Fort Lauderdale gates, reducing low-fare choices on key routes.