Spirit Airlines is preparing to cease operations after talks over a proposed $500 million U.S. government rescue package failed to come together, according to a new Wall Street Journal report. The plan reportedly called for government financing in exchange for warrants representing up to 90% of the airline’s equity, but WSJ reported that some bondholders and members of the Trump administration were not aligned on the proposal.
Spirit’s financial position was further pressured by higher jet fuel prices, in addition to ongoing competition from larger carriers, lingering fallout from the COVID-19 pandemic and various mechanical issues that left parts of its fleet grounded. Spirit filed for bankruptcy protection in late 2024 and again last year. The airline had previously reached an agreement with lenders that was intended to support an exit from its second bankruptcy by late spring or early summer, but Reuters reported that a rise in fuel prices following the war in Iran affected the company’s cost projections.
It is not immediately clear when Spirit might stop flying or how customers would be affected. According to Cirium data cited by The New York Times, Spirit operated about 12,000 flights in April, down from about 25,000 flights during the same period two years earlier.
Spirit shut down today!
They ceased flight operations. It can up a year to a year to completely close the company down,
Things like this don’t happen on an instant gratification schedule
Spirit has been on death watch for years.
Trump was foolish to think abut propping it up, foolish to distract from life and death decisions in the Middle East.
Earlier Joe Biden blocked merger with JetBlue.
Something tells me Trump wanted to use it as his own deportation airline but found out the plan wouldn’t work.