Spirit Airlines may cease operations as rescue deal collapses

Anabelle Colaco
03 May 2026, 21:44 GMT+10

Bankrupt discount carrier Spirit Airlines is preparing to cease operations after failing to reach an agreement with certain bondholders and the U.S. government on a bailout plan
Spirit Airlines and the White House did not immediately respond to requests for comment
A rescue hearing scheduled for April 30 did not take place after talks over the terms of a potential US$500 million U.S. government bailout reached an impasse

WASHINGTON, D.C.: Bankrupt discount carrier Spirit Airlines is preparing to cease operations after failing to reach an agreement with certain bondholders and the U.S. government on a bailout plan, The Wall Street Journal has reported, citing people familiar with the matter.

Spirit Airlines and the White House did not immediately respond to requests for comment.

A rescue hearing scheduled for April 30 did not take place after talks over the terms of a potential US$500 million U.S. government bailout reached an impasse.

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