Spirit lost $1.61 for every $1 it took in — and would still be losing money even if jet fuel was free
A recent court filing has exposed the dire situation that Spirit Airlines found itself in before its sudden shutdown earlier this month – operating at significant losses that even free jet fuel couldn’t resolve.
The struggling budget airline, known for its bright yellow Airbus fleet and low fares, halted operations after failing to secure a $500 million bailout from the Trump administration following its second bankruptcy filing in less than two years.
According to Spirit’s March operations report filed in bankruptcy court, the airline was losing $1.61 for every $1 it earned, with an operating margin of -61.2%.
Like many other airlines worldwide, Spirit struggled with the soaring jet fuel prices due to the Iran war causing a severe energy supply disruption. However, its narrow profit margins also played a role in the downfall of the company.
Aircraft fuel costs for the Florida-based airline amounted to $99,662,449, approximately 24% of its total operating expenses. Even if the fuel was provided for free, Spirit would have still faced a loss.
For more information, you can access the original court filing.
