Spirit Airlines at Risk of Liquidation as Fuel Costs Bite

Spirit Aviation Holdings Inc. is at risk of being liquidated as rising jet fuel prices spurred by the US war with Iran further squeeze the bankrupt budget carrier’s finances, according to people familiar with the matter.

Any decision by the company to potentially liquidate could come as soon as this week, said the people, who asked not to be named because the discussions are private. The situation is fluid as Spirit engages in ongoing talks with its creditors, and its plans could still change, they added.

A Spirit spokesperson declined to comment. Representatives of creditor groups didn’t return calls seeking ...