Spirit Airlines shares plunge after reports it is considering bankruptcy

Topline

Shares of Spirit Airlines fell more than 30% on Friday, marking the company’s worst loss since a merger with JetBlue Airways was blocked earlier this year after reports the budget airline was seeking bankruptcy.

Important facts

Get text alerts on Forbes breaking news: We’re introducing SMS alerts to help you stay on top of the most important news breaking the day’s headlines. Text “Alerts” to (201) 335-0739 or log in Here.

Big number

91%. That’s the amount Spirit shares have fallen Friday since hitting a 52-week high of $16.77 on Oct. 23, 2023.

Important background

Spirit, an airline that advertises ultra-low fares, has been in financial trouble since its failed takeover of JetBlue. Prior to a deal with JetBlue, Spirit announced plans to merge with Frontier Airlines in a $6.6 billion deal in February 2022, but those plans were canceled after JetBlue submitted an offer with a higher valuation. Spirit Chief Executive Ted Christie told shareholders in June that he was “encouraged” by the airline’s post-merger plan, adding that the company was not considering bankruptcy. Spirit has taken some steps to increase capital and save money, Christie said, including eliminating flight change fees and raising the maximum checked baggage weight from 40 to 50 pounds.

Further reading

ForbesSpirit Airlines stock plunges over 50% after JetBlue deal stalledFrom Antonio Pequeno IV