Spirit Airlines liquidation risk

The low-cost carrier, which operates hundreds of daily flights, has seen its financial position deteriorate rapidly following the failure of its merger with JetBlue.

Spirit's business model relied on stable fuel prices, which have been upended by the ongoing war in Iran and the closure of the Strait of Hormuz.

The company has already filed for bankruptcy twice in the past year, but analysts warn that a third restructuring may not be viable.

If the airline halts operations, it would mark one of the largest collapses in the history of the American aviation industry.