Spirit Airlines is facing financial challenges as it approaches a deadline to refinance over $1.1 billion in debt. The airline’s shares closed at a new low on Friday, falling by approximately 3% to less than $1.50 per share. The company had extended the deadline with U.S. Bank to Monday, after initially setting it for September.
Based in Miramar, Florida, Spirit Airlines has taken cost-cutting measures such as furloughing employees, reducing its flight schedule, and delaying aircraft deliveries in order to conserve cash during the past year. The airline has also dealt with grounded planes due to a Pratt & Whitney engine recall, as well as lower-than-expected bookings. Additionally, its planned acquisition by JetBlue Airways was blocked by a federal judge on antitrust grounds.
Since the beginning of the year, Spirit Airlines’ stock has plummeted by more than 90%, with a nearly 40% decline in October alone. Reports have surfaced that the carrier is contemplating a bankruptcy filing, although Spirit and advisor Perella Weinberg Partners have not officially commented on this matter.