Large airline company plans to declare itself bankrupt.

According to recent reports, Spirit Airlines is facing the possibility of declaring bankruptcy. This has caused concern for travelers as the holiday season approaches.

Sources close to the situation have revealed that the US-based airline is in discussions with bondholders and may file for bankruptcy within the next few weeks. This plan comes after negotiations to merge with another low-cost carrier, Frontier Airlines, fell through.

Initially, there were talks of a potential merger between Spirit and Frontier in 2022. However, things took a turn when JetBlue offered a higher bid and persuaded Spirit's investors to change their minds. Unfortunately, this deal was blocked by a federal judge in January due to concerns about competition.

As a result, Spirit was forced to furlough pilots and put a pause on their growth initiatives earlier this year. In October, they even had to sell 23 of their planes to GA Telesis for $519 million.

Despite these financial struggles, Spirit Airlines has remained a popular choice for budget travelers due to their lower fares. Customers have the option to pay extra for amenities such as baggage, seat selection, and snacks, rather than having them included in the ticket price.

However, the news of a possible bankruptcy has caused a sharp decline in Spirit's stock prices. On Tuesday, their shares fell by 39%, reaching an all-time low of $1.8. This is a significant decrease from their stock performance earlier this year, which saw a decline of almost 80%.

Just a day before this announcement, a Spirit plane was hit by gunfire while attempting to land in Haiti. This resulted in a flight attendant being injured and the plane being diverted to the Dominican Republic. In light of this incident and other similar attacks, the Federal Aviation Administration has banned all US airlines from flying in and out of Haiti for the next 30 days. This decision was made despite the newly appointed Haitian Prime Minister, Alix Didier Fils-Aime, promising to improve security in the country.

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