Spirit Airlines is reportedly considering filing for bankruptcy

(Gray News) – Spirit Airlines says the company is considering filing for bankruptcy after mounting financial losses the Wall Street Journal.

The outlet reported that Spirit Airlines was in discussions with bondholders about the terms of a possible bankruptcy following its failed $3.8 billion merger with JetBlue Airways.

Both companies agreed that it was unlikely for them to meet the requirements of the contract, according to a press release.

JetBlue’s new CEO Joanna Geraghty called the merger “a bold and bold plan designed to shake up the industry status quo” and accelerate JetBlue’s growth.

Spirit is currently seeking new financing from its creditors as well as an exchange that would extend its current debt.

Despite travel demand, the company is struggling to turn a profit, and without a deal the company would be forced into bankruptcy.

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