Spirit Airlines moves toward shutdown after government rescue and bondholder talks fail

Sat, 02 May 2026 23:14:00 +0200

Spirit Airlines is on the verge of ceasing operations after a planned $500 million government‑backed bailout faltered and key bondholders refused to support the rescue package. The low‑cost carrier, which had already been struggling with high fuel costs and a weak balance sheet, ran out of cash and could not secure the emergency financing needed to continue flying. As a result, the airline is winding down its operations in an orderly fashion, canceling flights and repositioning aircraft for return to lenders while sending crew members home. The shutdown is expected to cut thousands of jobs and disrupt travel for many passengers, particularly those holding tickets on Spirit and other low‑fare carriers. The Trump administration had offered a last‑minute rescue proposal and coordinated with other airlines to help absorb some of Spirit’s passengers, but ultimately the deal collapsed over disagreement between the airline, its creditors, and the federal government. The episode highlights the