Thread: Spirit liquidation rumored this week
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Old 05-01-2026 | 07:31 AM
  #212  
CincoDeMayo
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Originally Posted by yellowNEO
Anyone have the non-paywalled article they can copy&paste?
A Spirit Airlines airplane takes off from Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Fla.Eva Marie Uzcategui/Bloomberg NewsSpirit Airlines is preparing to cease operations.

The ailing budget airline had been hoping to finalize a $500 million lifeline from the government before running out of cash. The discount carrier hasn’t been able to get sufficient support between certain bondholders and the government to secure the funding to keep it in business, people familiar with the matter said.

Spirit had been in talks with the Trump administrationabout a deal that would have provided a cash infusion in exchange for warrants that could convert into a stake of up to 90% of the company.

But there had been disagreements inside the Trump administration over whether and how to fund the bailout. And not all Spirit bondholders were on board with that deal, the people said. Meanwhile, the airline is facing relentless cost pressure from higher fuel prices.

Absent the government bailout, Spirit is running out of cash, so now the airline is moving forward with plans to liquidate its aircraft fleet and shut down, the people said. It wasn’t immediately clear what the specific timing of that might look like.

Spirit has spent much of the past year and a half in chapter 11. The business model that once made it an industry maverick—bringing its brand of bargain basement fares coupled with fees for pretty much everything—faced pressure from more intense competition. The airline buckled after years of losses and a heavy debt load.
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