Spirit Airlines could begin liquidation as early as this week, according to people familiar with the matter. The timing has not been finalised and discussions remain ongoing, the sources said, speaking on condition of anonymity.
The airline has been attempting to recover from its second bankruptcy filing in less than a year but is now facing added pressure from rising fuel costs.
Spirit declined to comment on the report, saying it does not respond to market speculation.
The Florida-based carrier had earlier said it aimed to exit bankruptcy as early as spring 2026 after restructuring its operations.
Pilot and flight attendant unions had agreed to concessions in recent months to support the airline’s recovery efforts.
Spirit’s financial position has been weakened by higher operating costs, intense competition in the U.S. domestic market and lower fares.
The airline was also impacted by a recall of engines supplied by Pratt & Whitney, which grounded part of its fleet.
A planned acquisition by JetBlue Airways was blocked by a U.S. federal judge on antitrust grounds, further limiting its options.
The situation remains fluid and a final decision on liquidation has not been confirmed.
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