Spirit Airlines Faces a Rough Road After Failed Merger With JetBlue
Photo Credit: Flickr / Rene Hernandez
Skift Take
A merger with JetBlue would have been a lifeline for Spirit, but now the carrier faces an unclear path forward.
Spirit Airlines was once a golden child of the airline industry. But now that a judge has blocked its proposed merger with JetBlue, Spirit is on its own to deal with declining revenues and rising operating costs.
The airline hasn’t been profitable since 2019 and several analysts say it likely needs to find a buyer or another way to strengthen its financial situation.
“We believe Spirit is likely to look for another buyer,” TD Cowen analyst Helane Becker wrote in a note to investors on Tuesday, “but a more likely scenario is a Chapter 11 filing, followed by a liquidation.”
Fitch Ratings said in a report that Spirit's credit profile was "under pressure."
"We believe that Spirit needs to clearly articulate a near-term plan to preserve and generate liquidity, address its refinancing risk, and improve profitability to avoid a negative rating action," the Fitch report said.
The Wall Street Journal reported on Thursday th
