LATROBE, Pa. — Uncertainties regarding the future of Spirit Airlines reached a tipping point Wednesday as the company’s stock fell more than 60% on fears the low-fare airline company could file for bankruptcy.
The daily flight from Latrobe to Orlando, Florida on Spirit Airlines is quite popular.
“[I fly] probably three or four times a year,” said Wendy Watson of Ligonier.
“We used to do it twice a year at least now, we’re, just hopefully we get out once a year with all of this going on,” added Francis Matten of Johnstown.
The Arnold Palmer Regional Airport in Latrobe says last year they had more than 150,000 passengers through the airport between its daily flight to Orlando and seasonal flights to Myrtle Beach.
“We’re going to service those people whether it be with spirit or with somebody else,” said Gabe Monzo, Executive Director of the Westmoreland County Airport Authority.
The increase in uncertainty comes after the Wall Street Journal reported Tuesday that Spirit Airlines is preparing to file for bankruptcy.
The struggling airline has tried to merge with two other airlines this year, JetBlue and Frontier, but both failed.
The report from the Wall Street Journal sent Spirit Airlines’ stock tumbling more than 60% Wednesday.
The Westmoreland County Airport Authority said they’ve been in talks with other airlines for several months.
“Nobody wants to make a move until they see what spirit is going to do,” Monzo told Channel 11′s Andrew Havranek.
According to a filing with the Securities and Exchange Commission Wednesday, Spirit said negotiations to restructure its debt have been productive, and that restructuring would not affect customers, employees or shareholders.
However, they’re planning to sell nearly two dozen jets, have furloughed some pilots, and plan more staff cuts in January.
No routes have been cut so far, but people who fly Spirit Airlines from Latrobe are worried.
“I hope that Spirit’s able to stay in Latrobe,” Watson said. “I know it services a lot of the people in the local area of Westmoreland County.”
“It would affect our travels because it’s very convenient from Johnstown to here,” Matten said. “I hope they don’t go under.”
The Latrobe airport continues to expand its terminal for passenger travel.
And despite the uncertainty with Spirit, they’re optimistic they’ll still have flights.
“I feel pretty confident about that, yeah,” Monzo said. “If another airline out there and they see 150,000 people want to go somewhere, they’ll be here trying to provide the service.”
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