Spirit Airlines is preparing to shut down after failing to secure a financial lifeline from the Trump administration, according to multiple reports.
The budget carrier helped reshape air travel in the U.S., offering rock-bottom fares while charging extra for just about everything else, including seat selection, carry-ons even printed boarding passes. But a mix of challenges—rising fuel costs, stiff competition from larger airlines, the pandemic, and ongoing engine issues—left the company struggling to stay afloat.
In recent weeks, Spirit had been working to secure a $500 million bailout from the Trump administration. The proposed deal faced pushback from some of the airline’s creditors, who argued that the terms—potentially giving the government a 90 percent stake—would leave them worse off if the airline ultimately failed. Some Republican lawmakers also opposed stepping in with federal support.
The airline had hoped to emerge from its second recent bankruptcy as a leaner operation, but a spike in jet fuel prices tied to the war in Iran put additional strain on those plans.
A spokesperson for Spirit declined to comment beyond saying flights are continuing as scheduled for now.
The Wall Street Journal previously reported that the airline was preparing to shut down, though it’s still unclear when flights might stop or what it would mean for passengers. In past airline shutdowns, competitors have stepped in to offer stranded travelers discounted or free tickets.
Spirit’s presence had already been shrinking. The airline operated about 12,000 flights in April, down sharply from roughly 25,000 two years ago, according to aviation data firm Cirium.
The airline hasn’t turned an annual profit since 2019 and has lost billions in the years since. It struggled to rebound from the pandemic, particularly in its core markets, while also dealing with higher operating costs, a failed merger attempt with JetBlue Airways, and mechanical issues that sidelined parts of its fleet.
Many industry experts say it’s hard to see a path forward, even with government support. Some officials have raised similar concerns. Transportation Secretary Sean Duffy recently questioned whether a bailout would actually save the airline or simply delay an inevitable shutdown.
At one point, ultra-low-cost carriers like Spirit were highly profitable, sometimes outperforming larger rivals. But some argued the model has limits, pointing in part to a heavy reliance on fees and a customer experience that can wear thin.
The bailout proposal also ran into resistance because it would have given the federal government priority over other creditors if the airline collapsed.
