economy
Spirit Airlines prepares to shut down after failing to reach lifeline bailout deal
Talks with bondholders for a government bailout this week failed to yield a deal.
TL;DR
- Spirit Airlines may shut down as early as 3 a.m. ET on Saturday.
- The airline failed to reach a deal for a lifeline bailout with bondholders.
- This is Spirit's second bankruptcy in less than a year.
- Increased jet fuel prices due to the Middle East conflict present an additional challenge.
- Other airlines like United, American, and JetBlue are preparing to assist Spirit's customers and employees.
- Spirit pioneered the low-cost budget airline model but has faced years of challenges.
- A planned acquisition by JetBlue was blocked by the Biden administration.
- The airline had expected to emerge from bankruptcy midyear before the fuel price jump.