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Posted on 05/01/2026 9:01:00 AM PDT by DFG
Spirit Airlines is preparing to cease operations after a last-ditch rescue effort reportedly collapsed, leaving the struggling budget carrier on the brink of collapse.
The ailing airline had been hoping to secure a $500 million lifeline from the government to keep it afloat, but talks have failed to produce a deal.
People familiar with the matter told the Wall Street Journal that Spirit has been unable to win sufficient backing from key bondholders and government officials, raising serious doubts over its ability to continue operating.
Discussions had taken place with the Trump administration over a potential bailout package that would have provided fresh cash in exchange for warrants giving the government a possible stake of up to 90 percent in the company.
However, internal disagreements within the administration over whether and how to structure the support, combined with resistance from some bondholders, stalled progress.
Meanwhile, the airline has been hit by relentless financial pressure, including rising fuel costs and a prolonged downturn in its business performance.
Without new funding, sources say Spirit is rapidly running out of cash and is now preparing contingency plans to liquidate its aircraft fleet and wind down operations, though the timing remains unclear.
The carrier, once known for its ultra-low-cost fares and strict à la carte pricing model, has spent much of the past 18 months in Chapter 11 bankruptcy proceedings.
Its business model, long seen as disruptive in the airline industry, has come under increasing strain from rising competition, heavy debt, and sustained losses.
The airline built its reputation on offering some of the cheapest fares in the US, stripping services down to the basics and charging extra for everything from seat selection to carry-on bags.
That approach helped it grow quickly in the 2000s and 2010s, especially among price-sensitive travelers.
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Trump should lease out Spirit to fly ILLEGALS back to Mexico and drop them all off there!!
Their target customer audience was not conducive to keeping afloat.
Excellent idea!!
Bye!
Spirit is closing because of Trump’s rescue deal?
Flying became too cheap for the masses anyways and it was reflected in the kind of people on airplanes now.
I have been waiting for the other shoe to drop and companies becoming more video-chat oriented and business travel cuts another 20-50%, not to mention AI cutting jobs that did some travel by air as well.
🥳🍾✈️
(Have prayed for this since flying them ONCE at the cusp of a hurricane and living to tell how awful the airline treated ticket-holders. Their business model promotes a highly toxic economy and precedent for other corporations to follow suit.)
I get the idea that there is a market niche for a cheap airline, but Spirit is horrible. Bad customer service, constant delays and cancellations, nickel and diming customers on everything. I don’t know why such a substandard airline should be rescued.
Spirit has been in trouble for 10 years.
Funny how they never blamed Biden
Walmart of the skies.
Greyhound of the skies.
I feel sorry for the employees, etc. but if the market is oversaturated with too many airlines, rescuing it will not ultimately help anything - it would just delay the inevitable, and may result in other smaller airlines getting into the same problem that would have picked up the business.
Spirit relies primarily on bus people to fly. Trump wants to use the airline to fly criminal aliens out of America.
“Spirit has been in trouble for 10 years.
Funny how they never blamed Biden”
Not sure it’s Spirit which is blaming Trump; it’s the biased media.
Can’t resist any chance to get “Trump” and “fail” in the same headline, you know.
It’s too bad they couldn’t make a deal with Waffle House.
Good.
Carnival Cruse Line should buy it and advertise itself as one stop shopping for the complete Ghetto Experience.
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