Peter McNally, an analyst at investment-research firm Third Bridge, said Spirit used debt to grow aggressively coming out of the pandemic to increase its market share. But its costs rose and pricing power was damaged when other airlines also added flights, he said.

The Wall Street Journal, citing anonymous sources, reported late Tuesday that the airline was discussing terms of a possible bankruptcy filing.

Stockholders in financially troubled Spirit Airlines, the South Florida-based discount carrier, would see their shares cancelled under a potential debt restructuring agreement that has been under