Spirit Airlines has asked the federal government for an emergency bailout, according to a report from The Air Current published late Friday.
Citing individuals with knowledge of the matter, the outlet said Spirit is seeking hundreds of millions of dollars to offset the rising cost of jet fuel. The exact size of the potential rescue package was not immediately clear.
Spirit, which is navigating its second stint in bankruptcy protection, faced speculation this week that it could be on the brink of liquidation.
Unnamed sources told The Wall Street Journal, The New York Times, and CNBC that fuel costs have derailed the ultra-low-cost carrier’s recovery plans and forced discussions about a potential liquidation. The sources who spoke to CNBC said an announcement could come as early as this week.
The Air Current also reported that representatives from the nation’s low-cost airlines will meet with U.S. Transportation Secretary Sean Duffy next week to help gauge the market segment’s financial health after a difficult last two months.
Spirit has not commented on the report. Earlier this week, the airline said it would not reply to “market rumors and speculation.”
