Spirit Airlines' path out of bankruptcy has grown treacherous. The discount carrier is engaged in discussions with creditors who are now exploring a potential liquidation, according to people familiar with the matter. Rising jet fuel prices have dramatically shifted the landscape since Spirit reached an agreement with a group of creditors just days before U.S. and Israel began launching airstrikes against Iran.

The timing couldn't be worse. Spirit had been on track to emerge from Chapter 11 by early summer, but the sudden surge in fuel costs has thrown those plans into uncertainty. What appeared to be a manageable restructuring just weeks ago has become increasingly complicated as operating expenses mount.

Lenders behind Spirit's revolving credit line filed an objection to the reorganization plan last week, saying the proposal doesn't account for the airline's sharply higher costs. The lenders' opposition marks a significant obstacle to the carrier's survival, potentially pushing Spirit toward liquidation rather than a successful emergence from bankruptcy.