Spirit Airlines Prepares For Bankruptcy Filing After Merger Talks With Frontier Collapse : Report

Spirit Airlines

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(RTTNews) - Spirit Airlines is preparing to file for bankruptcy protection after merger discussions with Frontier Airlines fell through, the Wall Street Journal reported, citing sources familiar with the matter.

The Florida-based budget carrier is in advanced talks with bondholders to finalize a bankruptcy plan that would gain the support of a majority of creditors, as it grapples with significant losses and looming debt obligations. The airline is expected to file for bankruptcy within weeks, the report said.

Spirit had also explored the possibility of reviving its merger talks with Frontier, aiming to combine the two carriers as part of a larger restructuring in bankruptcy. However, Frontier ultimately decided not to move forward with the merger at this time.

In March 2024, Spirit Airlines announced the cancellation of its merger agreement with JetBlue Airways, following a U.S. court's decision in January 2024 to block the deal over anti-competition concerns.