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Spirit Airlines’ possible, and imminent, closure explained

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Update, May 1, 6:45 pm: The new York Times It is reported that Spirit Airlines may cease operations at 3am ET on Saturday, May 2.

Low-cost airline carrier Spirit is running on fumes right now, potentially ceasing operations this weekend as rising fuel costs have brought it to the brink of closure.

News reports last month indicated that the federal government could bail out the Florida-based airline for more than $500 million and a 90 percent stake in the company. The airline is facing bankruptcy for the second time in two years, CNBC reports.

That deal with the federal government did not come to fruition, but President Trump told reporters on Friday, “I think we’re considering [bailing Spirit out]. If we can do it we will do it. No organization could do this. I want to save jobs, but we’ll have an announcement sometime today. “We made them a final offer.”

CBS News’ Chris Van Cleve reports that only two of Spirit’s three major creditors have signed on to the government aid package, and its bondholders have not signed off on the deal.

Spirit, which has more than 10,000 employees, has not announced any updates on its website or X feed, but it is responding to posts on the social media site.

If the airline shuts down, people who booked flights will be refunded by their credit card companies, CBS News reports. Whenever and if the airline is closed, fliers will probably have to book their connecting flights on another airline. Spirit competitors may offer “rescue fares” to those passengers, potentially allowing them to reach their destination at a discounted price. If Spirit closes, the airline’s frequent flyer miles will likely become worthless.

Spirit is often the butt of jokes for its lackluster (though cheap) service – they charge for all carry-on luggage and don’t offer free water or snacks.





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