The president signaled this week the government could help discount carrier, which has struggled with surging jet fuel prices.
U.S. Transportation Secretary Sean Duffy on Tuesday raised concerns about using government funds to rescue low-cost bankrupt airline Spirit Airlines.
President Donald Trump says he wants someone to buy Spirit Airlines as the low-cost carrier battles bankruptcy and rising fuel costs threaten its recovery plan.
The Trump White House's investment portfolio runs the gamut of vital industries: mining, steel, semiconductors. Could an airline be next?
President Donald Trump told CNBC on Tuesday that the federal government could help struggling Spirit Airlines as the discount carrier faces the possibility of liquidation.
Spirit Aviation Holdings (OTC:FLYYQ) shares are surging on Tuesday as traders lean into a risk-on tape and chase high-beta names, even as liquidation chatter remains in the background after talk the carrier could be pushed into liquidation as soon as this week.
Florida-based Spirit has been working to sell some planes and refocus operations on core cities.
FLYYQ faces rising liquidation risk as fuel costs surge, sending its shares down 10.4% and rattling confidence across the airline sector.
Spirit Airlines' bankruptcy exit plan is under renewed pressure after a sharp rise in jet fuel prices undermined key assumptions behind its restructuring.
Spirit Airlines could move toward liquidation as soon as this week as surging fuel costs linked to the Iran war put further strain on the discount carrier's finances, Bloomberg reported. The airline, which has been operating under Chapter 11 bankruptcy protection, has been weighing its next steps as higher operating costs compound existing financial pressures, according to the report.
Spirit Airlines could liquidate as early as this week, sources say
Spirit Aviation Holdings , the parent company of Spirit Airlines, said on Friday it plans to shrink its fleet to about one‑third of its pre‑bankruptcy size, according to a court filing.