There is heightened speculation that Florida-based Spirit Airlines could soon liquidate.
The budget carrier has faced financial woes for several years and struggled to recover after its second bankruptcy in under a year.
Rising fuel costs sparked by the war in Iran have intensified Spirit’s challenges.
“We don’t comment on market rumors and speculation,” the airline said in a statement, according to CNBC.
NEW: Spirit Airlines could liquidate and shut down as soon as this week, @lesliejosephs of @CNBC reports, citing “people familiar with the matter.”
Latest round of chatter about a deeply troubled airline … but rising fuel prices could be its death knell.…
— Kyle Potter (@kpottermn) April 16, 2026
CNBC explained further:
The exact day the carrier could begin liquidation — or if it would even end up taking that path — wasn’t immediately clear. Bloomberg earlier reported on the potential liquidation.
ADVERTISEMENTThe news comes just as the U.S. airline industry, including Florida-based Spirit, is wrapping up its busy spring break season.
Pilot and flight attendant unions had made concessions in recent months in a bid to help Spirit survive. The airline had planned to shrink and focus on high-demand travel periods and routes in a bid to exit bankruptcy as early as this spring.
JPMorgan last week said in a note that if fuel stays at about $4.60 a gallon this year, Spirit’s forecast operating margin for the 2026 fiscal year from negative 7 percent to negative 20 percent. Spirit could face another $360 million of costs, over a $337 million cash balance as of the end of last year, JPMorgan airline analyst Jamie Baker wrote.
Jet fuel reached an average of $4.88 a gallon in New York, Houston, Chicago and Los Angeles on April 2, according to Argus, up about 95% since the Iran war started on Feb. 28.
Spirit expected to exit bankruptcy by this summer after reaching an agreement with creditors to reduce its debt and the cost of its fleet, the New York Post noted.
Although the airline is still operating and selling tickets, liquidation would put many passengers in travel limbo.
More below:
HEADS UP: If you have a summer flight booked on Spirit Airlines, you need to start looking for a backup plan tonight.
The receipts just leaked, and it is bad. Spirit is reportedly days, if not hours, away from total liquidation.
The execs have been playing games in bankruptcy… pic.twitter.com/OvmHB75CLm
— Desiree (@DesireeAmerica4) April 17, 2026
More from the New York Post:
The carrier filed for Chapter 11 bankruptcy protection in August 2025 for the second time in under a year.
Before they filed for the first bankruptcy, Spirit agreed to be acquired by JetBlue Airways, but a federal judge blocked the merger in 2024 on antitrust grounds.
ADVERTISEMENTLater, Frontier and Spirit reignited talks to merge in 2025, though it didn’t pan out.
