Spirit Airlines is preparing to shut down, according to reports from the Wall Street Journal, Bloomberg and The New York Times.<\/p>\n
The airline, which was first reported to be considering liquidation<\/span> several weeks ago, had hoped to secure a $500 million bailout from the U.S. government before running out of cash. Talks have reportedly stalled, however, with some of the creditors from Spirit’s current bankruptcy opposing the terms of the bailout; the move could have seen the government owning a sizable equity stake<\/span> in the airline.<\/p>\n It was not immediately clear what timeline Spirit is considering for its shutdown. A spokesperson for the company declined to comment, citing ongoing discussions. As of Friday afternoon, the airline was still operating its normal schedule.<\/p>\n Spirit has roughly 9,500 employees, according to a source familiar with the matter, although that number increases to 17,000 when including contractors.<\/p>\n The Florida-based airline had hoped to exit its second bankruptcy by this summer after reaching an agreement with creditors in late February<\/span>; it was in the process of shrinking its fleet and reconfiguring its network in an effort to find a more viable business model.<\/p>\n Since the start of the U.S. war in Iran, the price of jet fuel has surged, wiping out the small profit margin Spirit hoped to achieve as it exited bankruptcy and causing the airline to burn through its cash reserves faster than expected. Jet fuel is the second-largest operating expense for airlines (after labor), and it typically accounts for roughly a third of an airline’s expenses.<\/p>\n Reward your inbox with the TPG Daily newsletter<\/p>\n Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG\u2019s experts<\/p>\n![\"\"](\"\/images\/EmailSignUp\/daily-mob.svg\"\/)
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