Spirit Airlines Attributes Its Shutdown to Rising Gas Prices, According to Court Documents
· Telemundo McAllen (KTLM)
Spirit Airlines stated in court documents filed on Monday that it was forced to permanently ground its fleet over the weekend because "recent geopolitical events caused a massive and sustained increase in fuel prices." Although the court documents did not specify the nature of these geopolitical events, aviation fuel prices have surged in the two months since the start of the war against Iran. "The debtors and their advisors sought additional capital and any source of savings or liquidity, leaving no option unexplored," the airline noted in records submitted to the U.S. Bankruptcy Court for the Southern District of New York. "By Thursday, it became clear that sufficient additional liquidity would not be found and that no viable paths remained for restructuring or continuing operations." However, Spirit waited until early Saturday to cease operations, stranding thousands of travelers en route and forcing many others to rebook with other airlines. Many passengers reported that they received no warning that Spirit was about to cease operations. In the court documents, Spirit stated that it requested the Federal Aviation Administration "to issue a flight suspension order for Spirit to ensure that no accidental departures occurred" at 3 a.m. on Saturday.
AI summary · Source: Telemundo McAllen (KTLM) →
