US EditionTrump Likes the Idea of the Government Owning some US Companies but Took a Pass on Spirit Airlines
- On Saturday, May 2, 2026, discount carrier Spirit Airlines ceased all operations after failing to secure creditor support for a $500 million government bailout, marking the industry's first major liquidation in two decades.
- Driven by the ongoing Iran war, jet fuel prices surged to around $4.51 a gallon by late April, more than double the company's $2.24 projection, upending Spirit's bankruptcy exit strategy.
- President Donald Trump's administration proposed $500 million in financing in exchange for 90 per cent equity, but talks hit an impasse after opposition from Congress and internal advisers questioned the deal's merit.
- Major carriers including JetBlue Airways, Frontier Airlines, United Airlines, Southwest, and American Airlines launched rescue-fare options, with JetBlue offering $99 fares, after Spirit cancelled 4,119 flights scheduled through mid-May.
52 Articles
52 Articles
Spirit Airlines Collapses As Creditors Reject Rescue Amid Soaring Fuel Costs - Spirit Aviation Holdings (
Spirit Airlines (OTC:FLYYQ) stopped flying on Saturday after its creditors wouldn't back a U.S. government rescue plan, leaving the carrier to liquidate as the Iran war sent jet fuel costs sharply higher. The failure lands in the middle of a fierce bailout debate, with transportation policy analyst Marc Scribner arguing in a push against using public funds for bailouts that Spirit's risks belong with shareholders and lenders rather than taxpayer…
Associated Press News
Trump likes the idea of the government owning some US companies but took a pass on Spirit Airlines
President Donald Trump has taken a shine to the government taking stakes in the private sector. But his administration took a pass on bailing out troubled Spirit Airlines.
Donald Trump could not even help: all Spirit Airlines aircraft remain permanently on the ground due to the high kerosene prices resulting from the Iran war. Flights were cancelled, customer service stopped.
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