Spirit Airlines is preparing to shut down operations after a proposed $500 million (£367 million) government rescue deal failed to materialise, leaving the carrier dangerously low on cash. According to a Wall Street Journal report, the airline had been negotiating a last-minute bailout but could not secure sufficient support from both government officials and key bondholders.
The collapse of the deal marks a critical turning point for Spirit Airlines, which has spent much of the past year navigating Chapter 11 bankruptcy. With mounting debt, rising fuel costs, and intensifying competition, the airline now faces the prospect of liquidating its fleet and ceasing operations entirely.
