Budget carrier prepares to halt operations and liquidate assets as funding effort fails and cash reserves dwindle.
By yourNEWS Media Newsroom
Spirit Airlines is preparing to cease operations as early as this weekend following the collapse of a proposed federal bailout that the company had sought to remain operational, according to a Wall Street Journal report.
The low-cost airline had been working to secure approximately $500 million in government assistance, but the effort did not move forward amid hesitation from the administration and opposition from bondholders who raised concerns about the financial impact on their holdings.
Without the expected funding and facing continued pressure from rising fuel expenses, the airline’s financial position has deteriorated. The company is now reportedly preparing to wind down operations and begin liquidating its aircraft fleet.
The report cited individuals familiar with the situation who said the carrier is nearing the end of its available cash, leaving few options to continue service.
If finalized, the shutdown would mark the end of one of the nation’s prominent ultra-low-cost carriers, which has operated on a model built around discounted fares and limited service offerings.
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