Spirit Airlines prepares to shut down operations overnight, sources say
Spirit Airlines is preparing to cease operations after failing to secure a rescue deal, marking the first major US airline failure linked to soaring jet fuel prices caused by the Iran war. The shutdown will result in thousands of job losses and follows the collapse of a proposed $500 million White House bailout. No buyers stepped forward to acquire the airline despite efforts by the Trump administration and transportation officials.
- ▪Spirit Airlines is set to halt operations after its board failed to reach a rescue agreement.
- ▪The airline's bankruptcy was exacerbated by a doubling of jet fuel prices during the two-month Iran war.
- ▪The Trump administration proposed $500 million in financing for 90% equity in Spirit, but the plan faced internal opposition and lacked bondholder support.
- ▪Spirit's wind-down will include stopping flights, repositioning aircraft, and sending crews home.
- ▪No other major US airline of Spirit’s size has liquidated in the past two decades.
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Spirit Airlines prepares to shut down operations overnight, sources saySign up now: Get ST's newsletters delivered to your inboxSpirit helped keep fares lower in markets where it competed against major carriers.PHOTO: REUTERSPublished May 02, 2026, 12:27 PMUpdated May 02, 2026, 12:27 PMWASHINGTON – Bankrupt discount carrier Spirit Airlines is preparing to cease operations at around 3am (3pm Singapore time) on May 2, two people close to the discussions told Reuters late on May 1.A Spirit board meeting ended without an agreement to rescue the company, one of the people said.The collapse of Spirit will result in thousands of lost jobs and marks the first airline to fail in part due to a doubling in jet fuel prices during the two-month Iran war.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Straits Times — World.