"Spirit's in trouble. Maybe the federal government should help out on that one...it's 14,000 jobs."
"The Middle East conflict has ignited an explosion in jet fuel prices, which typically account for 20% to 30% of airlines' pre-tax costs."
"A study by J.P. Morgan posits that due to the fuel hit, Spirit's set to lose 20 cents for each dollar of revenue, adding $360 million in operating costs."
"It's clear that Spirit can't keep flying-unless Trump indeed orders a huge cash refill from the government."
President Trump suggested a federal rescue plan for Spirit Airlines, which is struggling due to rising jet fuel prices and has been under bankruptcy protection. The government is considering a $500 million loan package in exchange for equity. Spirit's financial troubles are exacerbated by the Middle East conflict, leading to soaring fuel costs. A J.P. Morgan study indicates Spirit could lose 20 cents for every dollar of revenue, adding significant operating costs. Without government assistance, Spirit may not survive financially.
Read at Fortune
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