Spirit Airlines Cites Geopolitical Shock Behind Fuel Spike, Shutdown

(MENAFN) Spirit Airlines has told a US bankruptcy court that “recent geopolitical events” led to a sharp surge in fuel costs that ultimately pushed the low-cost carrier into shutting down its operations and grounding its fleet over the weekend, according to reports.

The airline’s parent company, Spirit Aviation Holding, said it had exhausted all possible alternatives before requesting emergency court approval to wind down its business and liquidate its remaining aircraft assets.

“The Debtors and their advisors searched for increased capital and any sources of savings or liquidity, leaving no option unexplored,” the company said in a filing submitted to the United States Bankruptcy Court for the Southern District of New York. “It became clear on Thursday that sufficient incremental liquidity would not be found.”

As part of the liquidation process, Spirit is seeking authorization to sell its aircraft, spare engines, and parts. It has also requested permission to dispose of equipment that cannot be sold in a cost-effective manner.

“In particular, Spirit is hereby requesting authorization to abandon the aircraft that it owns and are not already subject to a purchase agreement,” the court documents stated.

The airline officially halted all operations on Saturday, following years of financial pressure and unsuccessful efforts to secure a rescue deal, according to reports.

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