Spirit Airlines Inc. is said to be preparing to file for bankruptcy protection after merger talks with Frontier Group Holdings Inc. fell through, according to the Wall Street Journal.
The budget airline is currently in advanced discussions with bondholders to establish a bankruptcy plan that would gain the support of a majority of its creditors. The airline is facing significant financial challenges, including increasing losses and upcoming debt maturities.
This situation highlights the ongoing difficulties faced by companies in the airline industry as they navigate a complex economic landscape.