Financial Maneuvering
negotiated an extension for its debt refinancing plan with , pushing the deadline to December 21, aiming to refinance $1.1 billion in loyalty bonds due next year.
Despite the extension, Spirit's shares have plummeted nearly 90% this year, reflecting ongoing financial struggles and the impact of a failed merger with .
Industry and Operational Hurdles
The airline faces operational challenges, including grounding planes due to a Pratt & Whitney engine defect and trying to attract premium travelers amidst an oversupply of airline seats.
In response, Spirit has introduced premium seating options, cut costs by downgrading captains, offering unpaid leave to flight attendants, and paused hiring, while expecting to end the year with over $1 billion in liquidity.