Low-fare carrier, Spirit Airlines (Spirit), is preparing to cease operations after reportedly failing to secure a $500 million government bailout, according to The Wall Street Journal (WSJ).
The no-frills budget airline had been in talks with the Trump administration about a measure that would have provided a $500 million loan in exchange for warrants that gave the government ownership of 90% of the company.
According to people familiar with the matter, Spirit has failed to get sufficient help from certain bondholders and the government to garner enough money to continue operating.
The Floridian reported that, according to JPMorgan, Spirit was on track to exit its second bankruptcy in the summer of 2026. Following the launch of “Operation Epic Fury,” the surge in jet fuel prices led to the airline’s projected recovery to falter.
WSJ reported that across the Trump administration, disagreements over whether to adopt the measure and how to fund the bailout grew, with some Spirit board members rejecting the proposed deal.
Sources familiar with the matter informed WSJ that the carrier is preparing to advance with plans to liquidate its aircraft inventory and shut down amid failures to reach an agreement.
“The most important thing to know is that Spirit continues to operate and offer high-value travel options. Our flights are operating as scheduled,” the airline said in a post on X following the reports.
