With no profit to show since Covid, Spirit Airlines is discussing a possible restructuring in preparation for declaring bankruptcy, according to a report in The Wall Street Journal.
Citing “people who are familiar with the matter,” The Journal said Spirit has been talking bankruptcy since its failed merger with JetBlue Airways. The airline is struggling to compete with the big carriers, and was hard-hit when a recall of turbofan engines grounded many of its planes, including many that were supposed to fly to the new airport in Tulum, Mexico. Last month it furloughed 186 pilots.
As part of its efforts to enhance the bottom line, Spirit has been cutting flights and making changes to the services it offers. This summer it rolled out a premium “Go Big” fare class that offers a larger seat and early boarding, lifted its checked baggage limit from 40 to 50 pounds, and did away with change and cancelation fees. Just this week it suspended nonstop service between Cleveland and Orlando, effective Nov. 5.
And still, it reported its 11th consecutive quarterly loss in August.
