Spirit Airlines faces possible asset liquidation risk

South Florida-based Spirit Airlines may be approaching a critical financial tipping point as rising fuel costs continue to intensify pressure on the Dania Beach-based carrier, News.Az reports, citing foreign media.

The low-cost airline could potentially be forced to liquidate its assets as early as this week.

Spirit, which maintains a significant presence at both Fort Lauderdale-Hollywood International Airport and Miami International Airport, operates more than 500 daily flights serving over 60 destinations.

The airline also currently runs one daily flight to and from Atlantic City from Palm Beach International Airport. A potential liquidation would represent a major and abrupt shift for an airline that has long played an important role in the South Florida travel market and has been a key option for budget-conscious passengers.

The company has been battling financial troubles for years and has been trying to recover from its second bankruptcy in less than a year. Now, rising fuel prices appear to be adding even more pressure to an already fragile operation.

In recent months, Spirit has taken a series of steps to try to stabilize its business. Pilot and flight attendant unions agreed to concessions to help the airline survive. The carrier has also tried to attract higher-spending travelers by offering bigger seats and bundled fares, while downsizing its fleet and trimming routes in an effort to improve its finances.

Spirit is not alone in facing higher operating costs. Other airlines have also responded to rising fuel prices by increasing ticket prices and baggage fees. But for Spirit, which has already been under significant financial pressure, the latest jump in fuel costs could prove especially difficult to absorb.

News.Az 

By Nijat Babayev