Spirit Airlines shares have plummeted 24.90% since August, with bankruptcy rumors looming, making the stock extremely high risk. Read my contrarian view here.

Spirit Airlines (SAVE) stock has been one of the worst performers in Wall Street in the last few years. It has suffered a harsh reversal, falling in the last five consecutive months, and reaching its all-time low of $1.

Shares of Spirit Airlines fell by over 30% on Friday, pacing the company’s worst loss since a merger with JetBlue Airways was blocked earlier this year, after reports indicated the low-cost airline was exploring bankruptcy. Spirit’s shares dropped to just over $1.50 as of around 9:50 a.m. Friday, following an earlier plunge in premarket trading.

Investors don't really have much to be optimistic about here. According to Wall Street consensus analyst estimates, Spirit's sales are expected to be down 7.7% for all of 2024, before rising just 1.8% in 2025. This is a discouraging near-term outlook.

Spirit shares took a nosedive on news of a possible bankruptcy filing. The budget carrier and its bondholders have discussed a potential Chapter 11 filing after its failed merger with JetBlue Airways,

By Pratyush Thakur and Rajesh Kumar Singh (Reuters) -Shares of Spirit Airlines plunged 37% to a record low on Friday after a report that the ultra low-cost carrier was discussing a potential bankruptcy filing.

The budget carrier has lost more than 85 percent of its value since it failed to merge with JetBlue Airways earlier this year.

Company is reportedly considering a bankruptcy filing.

Spirit Airlines’ efforts to restructure its debt and avoid filing for bankruptcy have hit a snag after months of talks with bondholders failed to result in a deal, according to people with knowledge of the matter.