Roomies, Spirit Airlines is said to be preparing to file for bankruptcy.
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More detailed information about Spirit Airlines is said to be preparing to file for bankruptcy
According to Fox EnterpriseThe airline’s most recent attempt to merge with Frontier Airlines reportedly failed, causing the latter company to abandon potential plans. Following this, Spirit is now preparing to file for Chapter 11 bankruptcy protection.
Additionally, the company noted that the recent unionization attempt was Spirit’s second failed attempt in less than two years. According to sources, Spirit previously tried to merge with Jet Blue. However, the initiative was said to be “blocked by regulators… over concerns that the deal would impact the availability of low-cost airline tickets”.
Repeated bad news is said to leave the airline “facing significant financial challenges”. This is said to be because the “ultra-low-cost carrier” is “struggling to recover from mounting losses and falling debts”. According to the source, “people familiar with the matter” confirmed that the company will file for bankruptcy “within weeks.”
Here’s what’s happened since the airline’s reported plan
Amid the company’s reported pending filing, it has sold multiple aircraft and laid off employees in an effort to “raise cash and revive operations.” Furthermore, next year, Spirit reportedly plans to reduce costs and expenses by another $80 million.
Despite the company’s plans, the airline’s share price reportedly “plummeted” 59% on Wednesday, November 13, 2019. Yahoo! Finance. Furthermore, the company added that Spirit’s stock price has dropped 90% since the beginning of the year.
Here’s why Spirit Airlines has been making headlines lately
News about the possibility of Spirit filing for bankruptcy comes in the context of this airline recently causing a stir in public opinion. EQUAL Shade room Previously, in October, a flight went viral after passengers allegedly discovered a “super rat” climbing onto the ceiling of the plane.
Furthermore, in more serious headlines, earlier this week another Spirit Airlines flight was hit by gunfire while trying to land in Haiti.
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