**Spirit Airlines Faces Financial Crisis Amid Bankruptcy Talks and Dropping Stock Prices**

Spirit Airlines experienced a precipitous drop in its stock value by over 50% in early trading on Wednesday. This stark decline came in the wake of reports that the company is on the brink of filing for bankruptcy and has opted not to release its quarterly financial results due to urgent negotiations with creditors. A Wall Street Journal article disclosed that Spirit may file for bankruptcy within a few weeks, after unsuccessful acquisition discussions with Frontier Airlines.

While Spirit refrained from commenting on the bankruptcy speculation, it acknowledged in a Securities and Exchange Commission filing that it is engaged in "productive" debt restructuring talks with its lenders. These debts are set to mature in 2025 and 2026. The company assured that any debt restructuring will not impact customers, employees, or suppliers.

The delay in releasing its third-quarter financial report is attributed to these ongoing discussions. Spirit did indicate that it continued to incur growing losses and a drop in revenue for the quarter. Passengers may be wary of booking future travel with Spirit due to the airline's uncertain future.

The troubled journey of Spirit began in February 2022 when it announced a $2.8 billion acquisition deal with Frontier Airlines. This plan encountered a twist in April 2022 when JetBlue Airways made a competing offer of $3.6 billion. Although Spirit initially favored the Frontier deal, its shareholders ultimately voted for the JetBlue offer.

However, the proposed merger with JetBlue faced a significant hurdle in May 2023 when the Justice Department sued to block it on antitrust grounds. A federal judge upheld the DOJ's argument in January 2024, blocking the deal due to concerns that it would reduce competition and drive up airfare costs. Despite JetBlue's initial decision to appeal, it abandoned the deal in March.

Spirit's financial struggles have been mounting. The company's stock has plummeted by 89% year-to-date, and it reported operating losses of $360 million for the first half of this year, significantly higher than the losses in the first half of 2023.

In efforts to stabilize its finances, Spirit has sold 23 of its Airbus aircraft and postponed future deliveries. Additionally, the airline has furloughed hundreds of pilots and announced further staff cuts planned for January.