Spirit Airlines Faces Bankruptcy, Full Liquidation in the Coming Days Due to High Fuel Prices

Spirit Airlines is in dire financial trouble and could be forced to liquidate any day now as a result of high fuel costs exacerbated by the Iran war.

According to a report from Bloomberg on Wednesday, April 15, the company is so low on funds that it may be forced to completely shut down in the coming days. The news comes as it’s already seeking court approval for a second restructuring in less than a year after narrowly avoiding bankruptcy in March of 2025.

Reuters reports that its previous restructuring plan, known as “Project Soar,” relied heavily on the idea that fuel costs would decrease over the course of 2026. However, that has not been the case.

The outlet reports it built its turnaround plan on estimates of $2.24 per gallon, but the current price sits around $4.24 per gallon. Creditors like Citibank have been pushing back on the plan, essentially saying the airline has to change its restructuring strategy in light of the high fuel prices. In short, continuing with its current plan is seen as unrealistic and would lead to almost immediate liquidation.

As for what that would mean for Spirit Airlines ticketholders whose flights would be after the liquidation and shuttering of the once-budged-friendly airline, that remains to be seen. Customers are already feeling the impact as Spirit maneuvers to stay afloat. Reuters notes that the company said in its March filing that it responded to the high fuel costs by increasing fares and capacity cuts.

However, it’s unclear if it will be enough to keep the airline in business if fuel prices continue to stay this high, as most of its plans relied on them getting lower as soon as possible.