Spirit Airlines preparing to shut down after failing to secure $500M bailout from Trump admin
Spirit Airlines is preparing to shut down after failing to secure a $500 million bailout from the Trump administration, according to reports. The airline had been negotiating a deal that would give the government up to a 90% stake in exchange for financial support and potential military use of its fleet. However, internal disagreements within the administration and opposition from bondholders caused the deal to collapse.
- ▪Spirit Airlines failed to secure a $500 million bailout from the Trump administration.
- ▪The proposed deal would have given the government up to 90% ownership of Spirit Airlines.
- ▪Some bondholders opposed the bailout, and there was internal conflict within the Trump administration over funding it.
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Business Spirit Airlines preparing to shut down after failing to secure $500M bailout from Trump admin By Taylor Herzlich Published May 1, 2026, 11:38 a.m. ET Spirit Airlines is preparing to shutter operations after a $500 million bailout deal with the Trump administration fell apart, according to a report Friday. The embattled budget airline has been unable to secure enough funding from the government and certain bondholders to keep it in business, the Wall Street Journal reported, citing sources familiar with the matter. Spirit Airlines is preparing to shutter after failing to secure a $500 million bailout from the Trump administration.
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