The crisis at Spirit Airlines appears to be entering its final stage.
According to CNBC, the budget carrier could begin liquidating as early as this week, a dramatic reversal from just two months ago, when the airline said it expected to emerge from bankruptcy this spring.
The possibility of a shutdown comes as Spirit was already preparing to cut jobs. Earlier this year, the airline appeared on WARN filings tied to companies laying off employees in January 2026, signaling that workforce reductions were already underway before liquidation became a possibility.
Spirit was one of more than 100 companies—including Amazon, FedEx, and Verizon—that notified state agencies of planned layoffs under the federal Worker Adjustment and Retraining Notification Act.
Under the WARN Act, employers are required to give workers at least 60 days’ notice before carrying out large-scale layoffs or closing a facility.
Spirit’s inclusion on those filings suggested the airline was already shrinking its workforce while trying to survive its second bankruptcy in less than a year. Now, if liquidation proceeds, those cuts could grow significantly.
The airline’s financial position has deteriorated rapidly in recent weeks because of rising fuel costs. Jet fuel prices have nearly doubled since late February, making it far more expensive for carriers that rely on low fares and thin profit margins.
Analysts at JPMorgan estimated that if fuel remains around $4.60 per gallon this year, Spirit could be hit with roughly $360 million in additional expenses—more than the $337 million in cash it had at the end of 2025.
“We don’t comment on market rumors and speculation,” Spirit said in a statement after reports of a possible liquidation surfaced.
Spirit had already been trying to reduce expenses through layoffs and route cuts. Pilots and flight attendants agreed to concessions in recent months, while the airline planned to operate fewer flights and focus only on the busiest travel periods.
But competitors moved quickly into the same markets. Frontier Airlines and JetBlue Airways have both added service on routes where Spirit once had a strong presence.
The company’s struggles date back to 2023, when a recall involving Pratt & Whitney engines grounded dozens of its Airbus planes. Its planned merger with JetBlue was later blocked by a federal judge.
