On Feb. 24, just days before the war in Iran began, Spirit announced that it expected to exit Chapter 11 bankruptcy in the late spring or early summer, after striking a deal with its lenders and secured creditors. Since then, the war has severely limited tanker traffic in the Strait of Hormuz, spiking oil and jet fuel prices, which has reverberated through the airline industry and, rumor has it, jeopardizing Spirit’s tenuous finances.
A Spirit spokesperson told Fortune the company does not comment on market rumors and speculation and that operations were continuing as normal.
Spirit is working its way out of its second bankruptcy since November 2024. In the restructuring agreement announced in late February, the company said they will reduce off-peak flying and adjust seasonal demand. The company expected to reduce its debt and lease obligations from $7.4 billion pre-bankruptcy to approximately $2.1 billion post-emergence.
