A Spirit Airlines plane sits parked at Hollywood Burbank Airport on April 16, 2026 in Burbank, California.

Justin Sullivan | Getty Images

Spirit Airlines struggled for years, battered by larger, cash-rich airlines that copied its business model, failed mergers , higher costs and, most recently, a surge in jet fuel prices because of the war in Iran. It then faced the most unforgiving foe: time.

"We just kind of ran out of runway," CEO Dave Davis said in an interview with CNBC on Monday.

Spirit had hoped to exit bankruptcy , its second in less than a year, in mid-2026. Four days before the U.S. and Israel attacked Iran, a conflict that has sent fuel prices skyrocketing, Davis said he and his team were optimistic that the exit strategy could still work.…