Spirit Airlines is facing a critical financial situation as rising jet fuel prices jeopardize its bankruptcy exit strategy. According to J.P. Morgan, if fuel prices remain high, the airline's projected operating margin for 2026 could deteriorate to negative 20%, a significant drop from the 0.5% margin initially assumed in its restructuring plan. This situation adds approximately $360 million in costs, exceeding the airline's unrestricted cash reserves. Spirit's restructuring plan, known as 'Project Soar,' aims to reduce its fleet to 76 aircraft by mid-August 2026, focusing on more profitable routes and reducing aircraft-related debt. The airline targets nearly $1 billion in cost reductions and aims for improved revenue through pricing strategies and premium seating options. However, Citibank has indicated that Spirit is in default on parts of its credit agreement, which may require the company to repay over $35 million or provide additional collateral, raising concerns about potential liquidation. By the end of 2025, Spirit reported about $273 million in unrestricted cash, but under its revised plan, this could drop to $87 million at its lowest point.