Spirit Airlines shutting down after failed effort at government rescue deal
Spirit Airlines has ceased operations after failing to secure a $500 million federal bailout, leading to the immediate cancellation of all flights. The airline, which had filed for bankruptcy twice since 2024, faced mounting financial pressure from rising jet fuel costs and opposition from key bondholders to the government rescue deal. The shutdown marks the end of the low-cost carrier known for its bright yellow planes and no-frills service.
- ▪Spirit Airlines announced the immediate wind-down of operations after failing to obtain a federal bailout.
- ▪The airline filed for bankruptcy twice since 2024 and had previously cut nearly 4,000 jobs and 200 routes.
- ▪Bondholders including Ken Griffin's Citadel and Ares Management Corp. opposed the government's proposed rescue deal.
- ▪The Trump administration declined to make a last-minute intervention to save the airline.
- ▪Spirit Airlines operated flights to over 40 U.S. cities and had international routes to the Caribbean, Central and South America.
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MoneyWatch Spirit Airlines shutting down after failed effort at government rescue deal .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Megan Cerullo, Megan Cerullo Reporter, MoneyWatch Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting. Read Full Bio Megan Cerullo, Kris Van Cleave, Kris Van Cleave Kris Van Cleave Emmy Award-winning journalist Kris Van Cleave is the senior transportation correspondent for CBS News based in Phoenix, Arizona, where he also serves as a national correspondent reporting for all CBS News broadcasts and platforms.
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