A Spirit Airlines representative on Friday dismissed reports that the company may be at risk of imminent liquidation as “market rumors and speculation.”
Bloomberg reported Wednesday that Spirit Aviation Holdings Inc. could be at risk of liquidation as jet fuel prices rise following the U.S. war with Iran. The outlet said the information came from sources with knowledge of the situation. However, in an email to the Houston Chronicle, the airline said its operations continued as normal.
The Florida-based airline filed for bankruptcy for the second time in a year last September as it tried to reduce debt and raise capital. In October, it announced plans to furlough 1,800 flight attendants, which included 173 at Houston’s Bush Intercontinental Airport, the Chronicle previously reported.
Houston Airport System officials did not immediately return a request for comment on Bloomberg’s report or potential Houston impacts.
In February, the Associated Press reported that the airline’s parent company said it expected to exit Chapter 11 bankruptcy in late spring or early summer.
Spirit Airlines had rejected Frontier Group Holdings’ acquisition offer, which was worth about $2.16 billion, as CNN reported that the company said the bid was less beneficial to shareholders.