economy
Spirit Airlines shutting down after failed effort at government rescue deal
Updated on: May 2, 2026 / 11:15 AM EDT / CBS News
TL;DR
- Spirit Airlines has ceased operations immediately due to the failure to secure a $500 million federal bailout.
- All Spirit flights have been cancelled, and passengers are advised not to go to the airport.
- Refunds will be automatically processed for tickets purchased directly with the airline via credit or debit card.
- The airline cited a "creditor issue" and a "sudden and sustained rise in fuel prices" as reasons for the shutdown.
- Department of Transportation Secretary Sean Duffy disputed the fuel price reason, pointing to Spirit's prior bankruptcy filings and a low-cost model that "wasn't working."
- The Trump administration was involved in discussions for a bailout, which would have given the U.S. government a 90% stake in the airline.
- Spirit previously filed for bankruptcy twice since 2024 and has undergone significant job and route cuts.
- Other airlines, including United, Southwest, JetBlue, and Delta, are offering reduced fares to Spirit customers.
- American Airlines is reviewing opportunities to add capacity and is preparing a jobs page for displaced Spirit employees.