Negotiations over the bailout unraveled in the final days of April 2026. If Spirit ends up in liquidation, it will be the first major US carrier to liquidate since the 2008 recession.

The company has sought bankruptcy protection twice, with its most recent filing last year. It struggled to make a deal with its creditors and secure funding to maintain operations.

Spirit operates key routes out of major California hubs like Los Angeles International Airport, Hollywood Burbank Airport, and John Wayne Airport in Santa Ana. High oil prices have pushed up the price of jet fuel, further complicating its financial situation.

The proposed federal bailout would have handed the government majority ownership of Spirit Airlines. As fuel prices rise, many low-cost carriers face similar challenges in the recovering airline industry.

Donald Trump commented, “We gave them a final proposal.” The White House added that “the company would be on a much firmer financial footing had the Biden administration not recklessly blocked the airline’s merger with JetBlue.”

Officials have not confirmed an exact timeline for Spirit Airlines’ potential shutdown. The outcome of ongoing discussions regarding federal assistance remains uncertain.

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