Brew Markets Why Spirit Airlines’ Bankruptcy May Spark Mergers & Kraft Heinz Splits
Sep 2, 2025
Spirit Airlines faces a critical future as it files for bankruptcy for the second time, raising questions about possible mergers. Meanwhile, Kraft Heinz is splitting into two focused companies after ten years, but is this move favorable for investors? The discussion also reflects on Warren Buffett's legacy and the potential shifts in Berkshire Hathaway’s succession plan. All this unfolds against a backdrop of changing consumer preferences in the food industry and volatility in airline stocks.
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Reassess Deals As DOJ Enforcement Shifts
- Watch DOJ attitudes on blocked airline deals because changing enforcement can reopen past rejections.
- Consider the disruptive harm of a carrier collapse, not just anti-competitive risk, when predicting deal outcomes.
Leases Exposed Spirit’s Fragility
- Lease terminations grounded roughly 25% of Spirit's fleet and halted future growth by canceling new-jet leases.
- Landlords pulled leases because they doubted Spirit's viability as a counterparty amid soft demand and high costs.
Scale Is Spirit’s Missing Lifeline
- Spirit Airlines lacks scale, cash, and credibility to survive repeated bankruptcies without a merger or acquisition.
- Anne Berry argues a deal is the likeliest path to prevent a third bankruptcy and stabilize the carrier.