Spirit Airlines is in advanced talks with bondholders over a potential bankruptcy filing, a Wall Street Journal report said on Tuesday. Merger talks between the financially ailing ultra-low-cost carrier and Frontier halted.
The airline – which has posted quarterly losses for several years – sold over 20 aircraft last month in a deal to raise cash. Spirit has also reduced capacity on a year-over-year basis.
Next year, the carrier is slated to furlough hundreds of pilots and downgrade several more captains. Spirit has yet to report its third-quarter earnings, but noted that more losses are expected. In the second-quarter, the carrier reported a net loss of $158 million.
According to the report, Spirit is planning a bankruptcy filing “within weeks.”
