Spirit Airlines was reportedly preparing to cease operations early on Saturday, May 2, after last-minute rescue talks failed to produce an agreement for the bankrupt U.S. low-cost carrier.
Reuters reported that the airline was expected to stop flying at around 3 a.m. ET, citing two people familiar with the matter. The decision followed a board meeting that ended without a deal to save the company.
Spirit had been trying to secure a rescue plan while operating under bankruptcy protection. Reuters previously reported that discussions over a possible $500 million U.S. government rescue financing package had stalled, with lenders pushing back against proposed terms.
The potential shutdown would mark a major collapse in the U.S. airline industry and a dramatic reversal for one of the country’s best-known ultra-low-cost carriers. Spirit built its business around low base fares and paid extras, a model that influenced pricing strategies across the U.S. market.
The airline’s financial position had deteriorated after years of losses, rising operating costs, and failed merger efforts. AP reported that Spirit had lost more than $2.5 billion since 2020 and had already reduced capacity while operating under its second bankruptcy process in less than two years.
A shutdown would create immediate disruption for passengers, especially in leisure markets where Spirit had a strong presence. It could also remove low-fare capacity from routes in Florida, Las Vegas, the Caribbean, and other price-sensitive markets.
As of the latest reports, Spirit had not yet issued a full public statement confirming the final shutdown plan. However, Reuters’ report indicated the airline was preparing to end operations unless a last-minute intervention changed the situation.
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