Spirit Airlines Losing Millions as Shutdown Rumors Swirl

Published reports say that Spirit Air, the budget airline that is the primary carrier at Atlantic City International, is in a serious financial situation and may have to abruptly shut down its operations at any moment.

According to a report from The Air Current, at least two competitor airlines were making preparations for Spirit Airlines to collapse on its December 13 bankruptcy milestone.

Multiple airlines are preparing to step in and help stranded passengers, as reports indicate that Spirit is on the verge of shutting down and suspending its flights sometime this week.

The report comes after the airline reportedly sold two gates at Chicago O’Hare to American Airlines, a transaction that was approved by the bankruptcy court, per View From The Wing.

View From The Wing reports that Spirit is losing over $3 million a day and needs this funding. Spirit denies that it is preparing to cease operations. And, they say, discussions with their lenders remain “ongoing” and “productive.”

Spirit Responds to Reports of Possible Shutdown

In a statement emailed to the Air Current, Spirit denied that it was ceasing operations.

“There is no truth to any rumors that we are preparing to cease operations. It is business as usual at Spirit, and flights continue to operate normally. We are working closely with our debtor-in-possession (‘DIP’) providers and other key stakeholders on a wide variety of issues to support the financial needs and future of the business, as we have been throughout our restructuring process.”

The statement concludes by noting that the ongoing discussions “remain productive,” according to the report.

Spirit's Uncertain Week Ahead

Spirit Airlines has 3,128 flights scheduled this week through December 20, according to data from Cirium Diio.

If the airline doesn't receive the necessary capital injection, the Air Current says it may not be able to move forward with those flights.