Spirit Airlines Could Shut Down for Good This Week
Update: Spirit Airlines is preparing to shut down after failing to strike a deal for a $500 million lifeline. NYT reports that some of the investors that Spirit owed money to opposed the terms of the bailout, under which the government could have ended up owning 90 percent of Spirit, because it would have left them in a worse financial position if the airline eventually failed.
It looks like the end of the road for Spirit Airlines. After months of trying to stay afloat, a new CNBC report suggests the airline could be forced to shut down and sell off its parts as early as this week.
Spirit has been struggling for a while, but lately, everything that could go wrong has. Fuel prices have spiked, and a huge chunk of their fleet was already stuck on the ground because of engine problems. They tried to fix their finances through bankruptcy, but it seems they’ve run out of cash and time.
If Spirit actually goes under, it’s bad news for travelers. Not only could flights be canceled overnight, but ticket prices on other airlines will probably go up. Spirit was famous for being “no-frills,” but their low prices possibly kept the bigger airlines in check. Without that competition, flying may get more expensive for everyone.
If you have a flight booked with them, keep a very close eye on your email.
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