Spirit Airlines, known for its low-cost carrier model, has faced a significant financial crisis recently. Over the past week, its stock value plummeted by over 60%, primarily after a federal judge blocked its proposed $3.8 billion merger with JetBlue Airways. The merger was expected to bolster Spirit’s operations amid its growing debt burden, but antitrust concerns led to its rejection.

Spirit’s challenges stem from high operational costs, a fiercely competitive low-cost market, and difficulty adapting post-pandemic. The merger’s failure has fueled speculation about potential bankruptcy.