DETROIT (WXYZ) — Spirit Airlines is on the verge of shutting down, according to the Wall Street Journal.
The Journal reports so far, Spirit has failed to secure a $500 million bailout from the federal government that it needs badly.
Watch Darren Cunningham's video report below:
As fuel costs rise, cash reserves run low, and it's saddled with years of debt and mounting revenue losses.
7 News Detroit spoke with Spirit Airlines faithful flyers, like Marcus Stringer, at Detroit Metro Airport about the airline’s possible shut down.
“Spirit's always been the best though. I always fly Spirit," Stringer said. “I just found out today — from you."
The news brought uncertainty for Stringer who has a scheduled returning flight to DTW in one month.
Chloe Kim and Kristal Choi said Spirit is there go-to on a budget.
“The prices are great. The price is really cheap. It’s really good," they said.
“It’s kind of sad," Kim said.
"We use it a lot," Choi added.
David Fishman, president of Cadillac Travel Group, said it's not surprising.
“Spirit Airlines has been challenged for a number of years now. Every deal that they tried to complete with JetBlue or Frontier or United, all those deals have fallen through," he said.
Those efforts preceded the potential federal bailout that has yet to happen.
“What that (means) for the traveling public is a problem in a number of ways. One, if they bought the ticket with cash, they’re not going to get their money back. If they used a credit card and they haven’t traveled yet, there’s a good chance they could deny charges and they may get their money back," Fishman said.
"And then there could be some airlines that might help them out.”
Fishman said the biggest issue is if Spirit Airlines shut their doors at a moment's notice and leave travelers stranded. Maria Duarte travels between LA and Detroit on Spirit.
“It’s a straight, direct flight. I don’t want the 12-hour thing," she told 7 News Detroit.
If a bailout doesn’t happen, Duarte is bracing for a blow to her budget.
“I hope the prices aren’t too much higher, whoever else I have to fly with," she said.
7 News Detroit reached out to the Spirit’s corporate office. A spokesperson said they have no comment on the ongoing discussions, and that "Spirit is operating as usual."
