Spirit Airlines is one of the most popular options for plane passengers seeking cheap travel. It may not be the most glamorous airline, but Spirit is sure to get people from one city to another on its eye-catching airplanes. However, the company has seen its shares fall as rumors of bankruptcy have surfaced as of late. This comes after plans to merge with JetBlue faltered. 

Plane passengers have a love-hate relationship with Spirit Airlines

Plane passengers have many options when it comes to traveling by air. Many people fly with Spirit because the company offers lower price points. However, according to Reuters, things aren’t looking good for the budget airline as of late. Unfortunately, shares for the company recently fell by a massive 40 percent. Notably, this was before the bell on the morning of October 4th. 

However, the lowered shares aren’t because plane passengers are choosing other options. Instead, the stock fell because of rumors that the airline may be considering bankruptcy. It’s important to note that the company’s stocks are worth 85 percent less than they were last year. This decline came after the proposed $3.8 billion merger with JetBlue fell through. 

Notably, things haven’t been great for Spirit for some time now. As of the end of December, the company had about $3.06 billion worth of long-term debt and finance leases. While it’s believed the company could “renegotiate with creditors outside of bankruptcy,” it’s unknown if it would be able to cut down on fixed costs without bankruptcy relief. 

Of course, part of the problem is that many people decide to travel using other budget-friendly airlines. Still, hope isn’t lost for Spirit, as the CEO has said the company has other plans following the merger falling through.