CORRECT: Airlines Fend Off Debt Fears as Hormuz Stays Shut

Two of the airline industry’s most indebted carriers are trying to shake speculation over their future amid soaring jet fuel prices and dashed hopes of a Strait of Hormuz reopening.

Spirit Aviation Holdings Inc., the discount airline trying to emerge from its second bankruptcy filing, has floated offering an equity stake to the US government to help it stave off a potential liquidation. The CEO of JetBlue Airways Corp., meanwhile, told employees in an internal memo that it’s not considering a bankruptcy filing this year, countering comments made by founder David Neeleman on the prospect of the airline going bust. ...