Spirit Airlines at risk of liquidation as fuel costs bite, Bloomberg News reports

Spirit Aviation Holdings

16/04/2026 05:52

April 16 (Reuters) - Spirit Aviation Holdings FLYYQ.PK, the parent of Spirit Airlines, is at risk of liquidation as rising jet fuel prices due to the Middle East war could further strain the bankrupt carrier's finances, Bloomberg News reported on Wednesday.

Any decision on a possible liquidation could come as soon as this week, though the situation remains fluid as Spirit holds talks with its creditors, the report said, citing people familiar with the matter.

Spirit Airlines declined a Reuters request for comment.

The news comes as the low‑cost carrier presses ahead with a deep restructuring aimed at cutting costs and stabilizing its finances after filing for bankruptcy twice.

The company filed for bankruptcy protection for the second time in August 2025 with 214 aircraft. The Florida-based carrier emerged from its first bankruptcy in March last year.

Last month, Spirit said it plans to shrink its fleet to about one‑third of its pre‑bankruptcy size.

Surging jet fuel prices have upended the global aviation industry, forcing airlines to raise fares and revise their financial outlooks.

 (Reporting by Heera Hari in Bengaluru; Editing by Sonia Cheema)

 ((Heera.Hari@thomsonreuters.com;))