Spirit Airlines indicated Friday that it is still focused on recasting the terms of its debt obligations with bondholders, but did not address a nationally published report that it has been discussing a Chapter 11 bankruptcy filing with creditors.

The Wall Street Journal reported late Thursday that the low-cost carrier, which is headquartered in Dania Beach and is the busiest passenger airline at Fort Lauderdale-Hollywood International Airport, has been conducting talks with bondholders over the terms of a bankruptcy filing. The newspaper, citing unidentified sources, said that if a filing occurred, it “would not be imminent.”

Bloomberg, meanwhile, reported that talks have hit snags in the airline’s quest for new financing. Also citing unidentified sources, the news service said unresolved terms include the assets that bondholders could claim and the amount of financing to be provided.

Contacted Friday afternoon, the company referred the South Florida Sun Sentinel to a statement made in August by CEO and President Ted Christie during an industry analyst financial call.

“I want to note that we are engaged in productive conversations with the advisors of our bondholders to address the upcoming debt maturities,” Christie said at the time. “Because those conversations are ongoing, we are not going to go into detail or take any questions on this topic or speculate on potential outcomes. Needless to say, it is a priority, and we are focused on securing the best outcome for the business as quickly as possible, while staying focused on driving performance and implementing our new travel options and elevated guest experience.”

In June, Christie forcefully declared the company was not considering bankruptcy.

The company’s long-term debt including finance leases slightly exceeds $3 billion. Spirit has until Oct. 21, or about two weeks, to refinance $1.1 billion in bonds due in 2025.

In an aviation industry report published Friday, Raymond James analyst Savanthi Syth of St. Petersburg said she expects Spirit to work out a deal.

Improved bond deal prospects

“An agreement with bondholders appears increasingly likely,” she wrote. “However, while shares are at historic lows, the question will be if Spirit can restructure fixed costs outside of Chapter 11. We believe this is consistent with comments in a recent WSJ article on a filing not being imminent.”

The Wall Street Journal report, which was quickly picked up by other national media, helped drive down Spirit’s common stock in Friday trading to a record low of $1.67. For the year, the shares are off 85%.

The company has been fighting a spectrum of problems since a federal judge in January rejected JetBlue Airways’ proposed $3.8 billion takeover of Spirit on antitrust grounds. The Biden Administration’s Justice Department had sued to stop the deal.

The challenges facing Spirit include a manufacturer’s recall of flawed engines that has required the extended grounding of its Airbus jetliners. The issue forced the furloughs of nearly 200 pilots early last month. 

Late this summer, Spirit revamped its passenger experience, setting up an extensive new menu of fare, seating and service options so it can better compete with other airlines that have invaded its space in the discount market. Management has also extensively reworked Spirit’s route network.

The changes emerged as financial losses mounted for 2024. For the second quarter, Spirit posted a net loss of $192.9 million.