By Veronika Bondarenko | The Street
Despite repeated reassurances that Spirit Airlines (SAVE) would be able to recover from rising debt and a blocked acquisition by JetBlue Airways (JBLU) , the airline is now talking to bondholders about a restructuring plan in which a Chapter 11 filing is a possibility.
The news, initially broken by The Wall Street Journal late on Oct. 3, sent shares of the low-cost carrier tumbling more than 40% in after-hours trading to $1.36. At last check Friday the stock was trading at $1.53, off 32% from the Thursday regular-session close at $2.24. The Thursday close reflected an 86% drop this year.
“The Spirit team is 100% clear and focused on the adjustments we are currently deploying and will continue to make throughout 2024 to drive us back to cash flow generation and profitability,” Spirit CEO Ted Christie had said shortly after the JetBlue merger was blocked in January 2024.