Report: Spirit Airlines Prepares to Shut Down

Trump administration says it has made its ‘final offer’ to the struggling low-cost carrier.

Zach Vasile

Friday, May 01, 2026 at 03:15 PM ET

Verified

Edited By:

Travis Tingle

A Spirit A319 [Credit: AirlineGeeks/William Derrickson]

Key Takeaways:

Spirit Airlines is preparing to shut down after failing to secure an emergency aid deal from the Trump administration that satisfied its creditors.
The proposed government bailout was rejected by creditors who feared U.S. intervention would negatively affect the value of their claims.
A potential shutdown would result in thousands of job losses and canceled bookings for ticket holders.

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Budget carrier Spirit Airlines is preparing to close its doors, The Wall Street Journal reported Friday.

According to the Journal, Spirit was unable to reach a deal for emergency aid from the Trump administration that also satisfied its creditors. It was not immediately clear Friday if the talks are over, or if the various parties might return to the negotiating table.