Higher fuel costs are hitting one United States airline particularly hard—so much so that the carrier could shut down within days, according to reports.
Struggling ultra-low-cost carrier Spirit Airlines could liquidate as soon as this week, sources familiar with the carrier’s finances told CNBC.
The exact timeline of the potential liquidation, or whether it will happen at all, remains unclear.
Since August 2025, the budget carrier has been in the midst of its second bankruptcy restructuring in less than one year. Before fuel prices began to skyrocket, Spirit said it was hoping to emerge from its bankruptcy proceedings as soon as late spring.
But just days after those predictions were released in late February, the war in Iran and the resulting oil crisis erupted and appears to have severely weakened the airline’s bottomline.
Fuel is one of the largest costs for all airlines, and the cost of aviation fuel has nearly doubled since the war began, causing airlines to raise fare prices and add higher baggage fees.
Those tactics are likely not possible for Spirit, whose budget-conscious leisure customers are easily priced out of taking a vacation. Amid its second Chapter 11 filing, the low-cost airline was attempting to attract more premium fliers with new offerings like first class seats and fare bundles, but its primary customers were still price-sensitive economy passengers.
Spirit has also focused on shrinking its operations to help it become profitable again. The carrier reduced its fleet size, laid off pilots and cabin crew, trimmed its flight schedules to key routes during peak travel periods, and sold off its slots at airports.
With those changes, it had hoped to turn a profit by 2027. But in the current climate of the industry, that prediction seems more tenuous than ever.
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