From CFPB Block to Bankruptcy: How Democrats, Biden Regulators Grounded Spirit Airlines
Spirit Airlines has filed for bankruptcy and ceased operations, largely due to the U.S. government's 2024 block of its proposed merger with JetBlue Airways. Regulatory intervention by the Department of Justice, supported by the CFPB and FTC, prevented the merger despite financial struggles stemming from the pandemic. The collapse reduces competition in the airline industry and limits affordable travel options for lower-income passengers.
- ▪Spirit Airlines sought a merger with JetBlue in 2024 to recover from financial distress caused by the pandemic and lockdowns.
- ▪The Department of Justice, under the Biden administration, successfully blocked the merger with support from a federal court.
- ▪The Consumer Financial Protection Bureau and Federal Trade Commission were key regulatory forces opposing the merger.
- ▪Critics argue that blocking the merger reduced competition and harmed consumers in the low-cost airline market.
- ▪The Trump administration had considered a $500 million bailout, but it faced opposition from shareholders and some Republican lawmakers.
Opening excerpt (first ~120 words) tap to expand
From CFPB Block to Bankruptcy: How Regulators Grounded Spirit By Ward Clark | 1:32 PM on May 02, 2026 The opinions expressed by contributors are their own and do not necessarily represent the views of RedState.com. AP Photo/Charles Krupa, File For some time now, people of modest means have enjoyed being able to travel cross-country to visit friends and family, or just to take a vacation somewhere new, thanks to the several low-cost airlines. One of those is - was - Spirit Airlines, but Spirit is now closing its doors, and its bankruptcy and failure are due in large part to government interference.
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