Spirit Aviation Holdings could be liquidated imminently as the company’s finances, currently under Chapter 11 bankruptcy protection, are being squeezed by rising jet fuel prices, according to separate reports by Bloomberg and CNBC quoting people familiar with the matter.

The exact day that the Spirit Airlines (NK, Fort Lauderdale International) parent could fall into liquidation is not immediately clear, and Spirit’s management is in ongoing talks with its creditors, with the current situation described as fluid.

In a statement to CNBC, Spirit said it would not comment on market speculation.

The ultra-low-cost carrier is currently in its second Chapter 11 bankruptcy protection in a row, and has been downsizing its fleet heavily from over 200 aircraft at the beginning of the filing to between 75 and 80 expected for a hypothetical post-Chapter 11 environment.

The airline was expected to exit bankruptcy by this summer, after reaching an agreement with creditors.

As of the week of April 10, 2026, jet fuel, the airline’s single largest expense, had increased by 97.6% in North America compared to 2025’s average price, according to the International Air Transport Association (IATA). Airlines globally are grappling with the higher prices due to the United States and Israel’s attack on Iran, which led to the closure of the Strait of Hormuz, a key passageway for oil.

It is not the first time Spirit has been in the headlines with a possible liquidation. In December 2025, the airline secured USD100 million from creditors in extremis, as reports were being published that the company was near total collapse.