Spirit Airlines is cutting flights from Columbus as a report swirls that the ultra-low-cost carrier was in talks with bondholders about a potential bankruptcy filing.
The flights that Spirit is cutting from John Glenn Columbus International Airport are among a number being eliminated by Spirt, according to reports.
Flights to Dallas-Fort Worth, Boston and Newark, New Jersey, from Columbus are among those that have been cut.
Even with the reductions, Spirt flights are up 30% compared with last year, according to the airport.
Spirit handled 10.1% of John Glenn’s passengers in July and 8.7% through the first seven months of 2024, according to Columbus Regional Airport Authority data.
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Spirit’s shares fell about 26% on Friday as the Wall Street Journal reported on the possible bankruptcy filing.
The stock has lost more than 85% of its value this year as the carrier struggled with the fallout of a failed $3.8-billion-merger with JetBlue Airways.
Spirit’s long-term debt and finance leases amounted to approximately $3.06 billion, excluding current maturities, as of Dec. 31, the Journal reported.
“We suspect Spirit should be able to renegotiate with creditors outside of bankruptcy,” Raymond James analyst Savanthi Syth told Reuters but raised concerns on whether the airline can reduce its fixed costs without entering Chapter 11 protection.
The timing of such a filing, should it happen, would not be imminent, according to the report.
The airline, which has struggled to report profit in recent quarters, also had to ground several Airbus planes due to problems with the Pratt & Whitney geared turbofan engines.
The company has flagged a steeper loss in the third quarter due to what it called an “intense competitive battle” for price-sensitive leisure travelers and an oversupply of airline seats in the domestic market.
Spirit CEO Ted Christie had in June shrugged off concerns of a potential Chapter 11 bankruptcy and said he was “encouraged” by the plan it had in place after its JetBlue merger fell through.
mawilliams@dispatch.com
@BizMarkWilliams