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Bloomberg News reports that Spirit Airlines is at risk of liquidation due to fuel costs.

Bloomberg News reported that Spirit Aviation Holdings, the parent company of Spirit Airlines, was 'at risk of liquidation due to rising jet fuel prices caused by the Middle East war. This could put further pressure on the finances.

Spirit is still in talks with its creditors and a decision could be made as soon as this week. However, the situation remains fluid, according to the report, which cited people with knowledge of the matter.

Spirit Airlines declined ?a request for comment.

The news comes as the low-cost carrier continues to restructure its business in order to cut costs and stabilize its finances, after twice declaring bankruptcy.

The company filed for bankruptcy protection for the second consecutive time in August 2025, with 214 aircraft. The Florida-based carrier emerged successfully from its first bankruptcy in March last year.

Spirit Airlines announced last month that it would?shrink the fleet to about one-third its size before bankruptcy.

The global aviation industry has been thrown into turmoil by the rising jet fuel costs. Airlines have had to raise their fares and re-evaluate their financial forecasts. Reporting by Heera hari in Bengaluru, editing by Sonia Cheema

(source: Reuters)