A Spirit Airlines aircraft was observed undergoing operations in preparation for departure at Austin-Bergstrom International Airport on February 12, 2024, in Austin, Texas, according to a photograph by Brandon Bell from Getty Images.
Spirit Airlines shares reached a new low on Friday, preceding an impending deadline to refinance over $1.1 billion in debt. The airline’s stock concluded the day down approximately 3%, trading at under $1.50 per share. The budget airline extended its refinancing deadline with credit card processor U.S. Bank to Monday, having previously been set for September.
Based in Miramar, Florida, the airline has taken steps over the past year to manage its finances, including furloughing staff, reducing its flight schedule, and deferring aircraft deliveries. Many of Spirit’s aircraft are grounded due to a Pratt & Whitney engine recall, and the company has reported weaker-than-expected bookings. Additionally, its proposed acquisition by JetBlue Airways was halted after being blocked by a federal judge due to antitrust concerns.
The airline’s share value has declined by over 90% this year, experiencing a nearly 40% drop in October alone. Earlier in the month, the Wall Street Journal reported that Spirit Airlines is contemplating a bankruptcy filing, though both the airline and its advisor, Perella Weinberg Partners, have not immediately commented on the report.
