Spirit Airlines is examining options to address its financial challenges after a federal judge blocked the low-cost carrier’s deal to be acquired by JetBlue Airways, WSJ Pro Bankruptcy reported. Spirit plans to discuss with advisers a path forward as it faces near-term debt maturities, the people said. The company has roughly $1.1 billion in debt due in September 2025 and the risks surrounding its ability to refinance that debt are increasing, according to a Fitch Ratings report on Wednesday. U.S. District Judge William Young in Massachusetts on Tuesday rejected the $3.8 billion JetBlue deal, siding with the Justice Department in saying that the merger would have reduced competition and harmed travelers who rely on Spirit’s low fares. A representative for Spirit on Wednesday said “while we are disappointed with this outcome, we are confident in our strengths and strategy. Spirit has been taking, and will continue to take, prudent steps to ensure the strength of its balance sheet and ongoing operations.” The airlines can appeal the ruling. JetBlue and Spirit said they were evaluating “next steps as part of the legal process” in a joint statement Tuesday.
