Spirit Airlines has apparently reached the end of the runway.
After months of negotiations, the discount carrier is preparing to cease operations following the collapse of a critical government bailout deal, The Wall Street Journal reported Friday morning.
According to the report, a proposed $500 million government rescue unraveled after the airline simply ran out of time and cash, while bondholders balked at the terms. President Donald Trump had previously said he was weighing a taxpayer takeover of Spirit Airlines, with plans to resell the troubled carrier after oil prices decline.
“They have some good aircraft and good assets,” Trump said Thursday at an unrelated Oval Office event. “I’d love to be able to save those jobs. I’d love to be able to save an airline.”
Spirit, known for its ultra‑low fares and bare‑bones service, has been struggling to stay aloft amid mounting debt, rising costs and failed merger attempts. The airline filed for Chapter 11 bankruptcy protection in November 2024 and again in August 2025.
With the war involving Iran driving up jet fuel costs across the industry, creditors earlier this month raised fresh doubts about the airline’s long‑term viability.
This is a developing story.
The Associated Press contributed to this report.