Spirit Airlines is reportedly facing a deepening crisis, with concerns it could shut down after failing to secure a $500 million rescue deal with the Trump administration.
According to The Wall Street Journal, the proposed plan could have handed the government up to a 90% stake in the company, but disagreements within the administration and pushback from some bondholders stopped the deal.
Donald Trump said his administration has made a "final" bailout proposal to Spirit Airlines, but discussions with bondholders have not resulted in an agreement.
The airline is facing financial trouble due to rising expenses, changing consumer preferences, and an engine recall. Its planned merger with JetBlue Airways was blocked by the Biden administration.
Major US carriers are preparing for the possibility that Spirit could shut down, with United Airlines and American Airlines introducing fare caps and support for affected passengers.
Spirit is said to be preparing to liquidate its fleet and wind down operations, though the exact timeline remains unclear.
