
Spirit Airlines: On the brink – The low-cost airline facing bankruptcy
The US low-cost airline Spirit Airlines is apparently facing one of the greatest challenges in its corporate history. According to media reports, the airline is set to file for bankruptcy in the coming weeks. The Wall Street Journal reported that Spirit Airlines is currently in a critical financial situation and is negotiating intensively with its creditors to avert bankruptcy. Despite these efforts, the company currently appears to be unable to find a way out of its precarious situation. The report comes at a time when the airline is already struggling with considerable financial difficulties and has made several failed attempts in the past to stabilize its situation through mergers and sales. The causes of the crisis The crisis at Spirit Airlines did not arise overnight. The low-cost airline has repeatedly struggled with financial bottlenecks in recent years. The company made losses in five of the last six quarters. These persistent deficits have put the airline in a difficult position, which could now apparently lead to impending bankruptcy. According to internal sources cited by the Wall Street Journal, merger talks with competitor Frontier Airlines, which were originally seen as a way to save the company, have failed. Negotiations aimed at merging the two airlines failed to produce a viable solution, which further exacerbated Spirit Airlines' problems. The situation was further exacerbated by recent operating losses. The company recently announced that its adjusted operating margin in the third quarter was 12 percent lower than in the previous year. This figure illustrates the profound