Spirit Airlines shuts down after White House rescue deal falls through

Source: Washington Post

Updated May 2, 2026 at 3:30 a.m. EDT


Spirit Airlines is shutting down operations effective immediately, the airline said in a statement early Saturday, after a White House proposal to bail out the beleaguered budget carrier fell through.

The shuttering follows “extensive and comprehensive efforts to restructure the business,” the airline said, adding that the recent increase in oil prices and other pressures have “significantly impacted” its prospects. “With no additional funding available to the Company, Spirit had no choice but to begin this wind-down,” it said.

All flights have been canceled, and Spirit passengers should not go to the airport, the statement added. The airline said it would automatically process refunds for any flights booked directly with the company, while those who booked using a travel agent should contact the agent for a refund.

President Donald Trump suggested last week that the federal government should “just buy” Spirit Airlines, which has declared bankruptcy twice since 2024. The administration had been floating a $500 million rescue plan that would have given the government a hefty ownership stake in the budget airline — a proposal that drew criticism from some of Trump’s Republican allies, including within his administration. On Friday morning, reports emerged that the airline was unable to get support for the deal and would soon cease operations.

Read more: https://www.washingtonpost.com/politics/2026/05/02/spirit-airlines-flights-shutdown/