The Iran war and fuel prices doubling is not the demise of Spirit. Incompetent management, declaring bankruptcy and swindling the shareholders twice, Pratt engine issues, terrible customer service and reliability, that’s what brought Spirit down. People think twice when booking their flights on Spirit because they’re not sure if they’ll actually make it to their destination.

The high fuel prices just sped up the inevitable

it will be interesting to see if Spirit can manage to swindle the government as well.

This industry is about the unexpected happening and being able to deal with the unexpected. The oil price isn’t even that high when compared to previous “high oil” events. In the end, the Iran war was just the final light breeze that would have pushed the Jenga tower that is Spirit, over. That’s the industry.

Spirit will get their $500m bailout, and it will open the Pandora’s box of open hands from other airlines. Let that begging begin.

I can’t see any other airlines being willing to give up a 90% stake in their own company, or the creditors being happy to relinquish primary compensation rights if it’s not necessary.

Spirit had exited BK and had a slim chance. Trump starting a war that sent fuel prices through the roof has airlines worldwide on edge.

The war absolutely screwed Spirit.

Best of luck to all the Spirit employees.

spirit most definitely had NOT exited bankruptcy.

well….technically they exited the first….but not the second.

Spirit had no way of making the DIP repayment of 475 million coming up in July. The war was unfortunate, but it only fast tracked the inevitable.

That's not true, the confirmation plan laid out exactly what they would do with the DIP lenders. (They would be mostly equitized) Though it also assumed the elevated fuel prices would settle back towards $2.35 in mid-May which was obviously in hindsight unrealistic. But if the Iran War did not happen Citibank would likely have not filed the objection (their main issue was the fuel price) and the confirmation hearing would've proceeded.

Don’t forget about the massive amounts of premium that were being dished out and continue to be paid out, oh and all the cancellations. This is after the projections that were already questionable. Sorry they would have never made it.

The BK court would not let Spirit exit because there is no viable business plan. They have yet to show a realistic case of being profitable.