Trump administration in advanced talks for Spirit Airlines rescue
The administration is negotiating a potential $500 million financing package to prevent the struggling carrier's liquidation.
The ultra-low-cost carrier ceased operations Saturday after rescue talks with the Trump administration collapsed, affecting 17,000 employees and canceling all flights.
9:43 AM
Spirit Airlines announced early Saturday that it had begun an orderly wind-down of operations effective immediately, canceling all flights and ceasing customer service after failing to secure a $500 million federal bailout from the Trump administration.
"It is with great disappointment that on May 2, 2026, Spirit Airlines started an orderly wind-down of our operations, effective immediately," the airline said in a statement. "All Spirit flights have been cancelled, and customer service is no longer available."
The closure marks the end of the budget carrier's 34-year history. Spirit's final flight was flight 1833, which traveled from Detroit to Dallas and landed early Saturday morning just after midnight. The airline said it flew more than 50,000 passengers over the previous day and was working to return more than 1,300 crew members safely to their bases.
The shutdown affects approximately 17,000 employees. A Spirit Airlines spokesperson said the majority of the airline's workforce learned about the closure primarily through media reports rather than direct company notification.
Rescue negotiations between Spirit and the White House had been ongoing, with President Donald Trump expressing interest in providing economic assistance to save the airline. The proposed $500 million rescue package would have granted the federal government up to 90 percent of the company's stock. However, the deal faced resistance from major creditors and bondholders, and negotiations ultimately failed.
"If we could do it, we would do it, but only if it's a good deal," Trump said Friday before the airline's closure was announced.
Spirit had been struggling financially for years. The airline filed for bankruptcy twice since 2024 and had been emerging from its second bankruptcy filing when additional pressures mounted. The carrier's financial situation deteriorated sharply due to rising jet fuel costs driven by the Iran conflict. Fuel prices surged to over $4.50 per gallon by late April, more than double what the company had projected for 2026.
Passenger traffic had declined significantly. Spirit flew approximately 1.7 million passengers in February 2026, down 500,000 from February 2025. The airline had also reduced seating capacity to half of what it operated in May 2024.
Spirit served numerous destinations across the United States, particularly from Florida, and connected to more than 20 destinations in Latin America and the Caribbean, including Mexico, Colombia, Costa Rica, Honduras, Peru, Puerto Rico, and the Dominican Republic.
The airline said it would automatically process refunds for flights purchased with credit or debit cards, returning funds to the original form of payment. However, Spirit stated it would not assist passengers in booking alternate flights on other airlines.
The company reflected on its legacy, noting it was proud of the impact its ultra-low-cost model had on the industry over three decades and had hoped to continue serving passengers for years to come.
Some passengers learned of the shutdown only upon arriving at airports. Yash Kothari, a ticketholder, said he received notification via email at 1 a.m. and was unaware of the closure when he arrived at Philadelphia International Airport for a 5:45 a.m. flight Saturday.
The airline had been scheduled to operate 277 flights on Saturday before the announcement.
The administration is negotiating a potential $500 million financing package to prevent the struggling carrier's liquidation.
The German airline is reducing short-haul flights through October due to surging jet fuel costs caused by Middle East conflict and Strait of Hormuz closure.
Meta will lay off approximately 8,000 employees starting May 20 and halt hiring for 6,000 open positions.
Hastings, 65, will not seek re-election at June annual meeting to focus on philanthropy. Stock fell 8-9% on the announcement.
Saudi Arabia's Public Investment Fund will cease financing the golf league at year's end, leaving its future uncertain after four years of operation.
The administration launched a digital claims system Monday after the Supreme Court ruled in February that the president lacked legal authority to impose the tariffs.