Spirit Airlines nears bankruptcy as Frontier ends merger talks, reports Journal

Spirit Airlines is preparing for a bankruptcy filing following failed merger talks with Frontier Airlines, according to sources cited by The Wall Street Journal. The budget airline is negotiating with bondholders to develop a bankruptcy plan that would gain creditor support, as it faces mounting losses, a $1.1 billion debt maturity, and a critical refinancing deadline. Spirit had cut growth plans, furloughed pilots, and sold 23 aircraft to generate liquidity but these efforts have not resolved its financial pressures. Frontier’s decision to withdraw from merger discussions further complicates Spirit’s restructuring prospects.