Spirit Airlines stock plunges 60% as company reportedly preps bankruptcy filing

Published On Nov 13, 2024, 10:18 AM

Spirit Airlines has faced a massive stock drop of over 60% as it plans to file for bankruptcy. Following a failed merger with Frontier Airlines, Spirit is in talks with creditors to restructure its considerable debt. The company is unable to file its financial results for the third quarter as restructuring talks have diverted resources. Analysts are expecting a significant reduction in Spirit's operations, with zero buy ratings for the stock and a majority holding sell recommendations. Overall, there is growing skepticism about Spirit's future viability as a stand-alone airline.

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Stock Forecasts

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Negative

The significant drop in stock price and potential bankruptcy filing indicate severe financial distress. The lack of mergers and restructuring efforts suggest a likely continuation of losses for the airline. Investors should proceed with caution as the company might face significant operational cuts or asset liquidations.

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