Spirit’s bankruptcy exit plan cuts debt by billions and shrinks to 94 planes. But surging fuel prices from the Iran conflict could derail the whole thing.
Spirit Airlines has been through a lot. Two bankruptcy filings in under a year, a failed merger with JetBlue that a federal judge torpedoed, a rejected reunion with Frontier, and a balance sheet beset by debt. But against all odds, Spirit now has a path out of Chapter 11 and into something resembling a functioning airline again. The question is whether the plan is good enough to survive what’s happening in the world right now.
Then JetBlue showed up uninvited. The carrier launched a hostile bid that ultimately won over Spirit’s shareholders with a $3.8 billion offer, a 50% premium over the stock price, and a $470 million breakup fee if regulators blocked the deal. Spirit walked away from Frontier and straight into JetBlue Airways’ arms. This site wrote at length both supporting the merger and sharing reasons why it may have been a bad idea.
A great solo travel tip spotted this week on Live and Let's Fly.
