DANIA BEACH, Fla. — South Florida-based Spirit Airlines may not have much runway left as it navigates bankruptcy, according to multiple reports.
Outlets including the Wall Street Journal and Bloomberg report that the recent spike in gas prices caused by the Iran war are putting the carrier, headquartered in Dania Beach, at risk of liquidation ― potentially in the coming days.
The airline’s initial plan was to get out of bankruptcy by early in the summer, backed by agreements with lenders to cut its debt from about $7.4 billion to about $2 billion.
The restructuring plan included shrinking its fleet and reducing routes.
But, in court filings, lenders say they’re deciding whether to move forward with the plan or wind down the business entirely, citing Spirit’s failure to account for the airline’s dramatically higher costs, specifically for fuel.
The airline had reached an agreement with a group of creditors just days before the U.S. and Israel began launching airstrikes against Iran.
Spirit is also trying to split a $275 million loan into two separate pieces. But Citibank, which is representing the lenders, says that would break the original contract and ignore legal protections meant to keep Spirit’s collateral tied together.
It’s already disrupting the major low-cost travel option for South Florida residents, especially those who fly to Latin America and the Caribbean.
The airline, originally founded in the Detroit area before moving to South Florida in 1999, has a major operating base out of its adopted hometown airport: Fort Lauderdale-Hollywood International Airport.
The airline also has a crew base in Miami.
A Spirit Airlines spokesperson issued a brief statement to Local 10 News after an inquiry about the reports: “We don’t comment on market rumors and speculation.”
Copyright 2026 by WPLG Local10.com - All rights reserved.
