DANIA BEACH, Fla. (VINnews) — Spirit Airlines could begin liquidating its assets as early as this week amid soaring jet fuel prices that have further strained the bankrupt low-cost carrier, according to people familiar with the matter.

The Florida-based airline, which filed for Chapter 11 bankruptcy protection for the second time in less than a year, had been on track to emerge as a smaller operation by early summer. But sharply higher fuel costs, fueled by the U.S. conflict with Iran, have complicated those plans and prompted discussions with creditors that include the possibility of winding down operations, Bloomberg reported Wednesday.

Any decision on liquidation could come within days, the sources told Bloomberg, speaking on condition of anonymity because the talks are private. The situation remains fluid, however, and Spirit continues to engage with creditors. Plans could still change.

Spirit Airlines, known for its ultra-low fares and ancillary fees, has faced mounting challenges since its first bankruptcy filing in 2024 following the blocked merger with JetBlue Airways. It filed again in 2025 amid ongoing losses.

The carrier has not commented publicly on the reports beyond saying it does not address market rumors.

Liquidation would mean the end of operations for the airline, with assets sold off and flights potentially ceasing. Travelers with existing tickets are advised to monitor their flights closely and consider alternatives.

Spirit is headquartered in Dania Beach, just north of Fort Lauderdale, and operates numerous routes from South Florida airports.