Spirit Airlines is reportedly set to cease operations at 3am on Saturday after a bailout from President Trump has failed to materialize.
The airline, which began air operations in 1990, had been hoping for a $500 million lifeline from the federal government, but the deal has not been finalized in time due to financial complications, reports the Wall Street Journal.
Sources told the outlet that the budget airline has failed to get sufficient support from bondholders and the government to secure the funding before running out of cash.
The collapse of the airline could leave passengers stranded across the nation, and places over 14,000 jobs at risk.
Passenger Taylor Gonzalez, 27, told the Detroit Free Press that she fears being stranded in Los Angeles with her three-year-old son on Friday night, saying she ‘didn’t know about this until just now.’
Despite the reported end of its operations, Spirit’s website is still allowing customers to book flights before the 3am deadline.
The carrier previously filed for bankruptcy twice between November 2024 and August 2025, and it currently remains under Chapter 11 protection.
The airline has been in talks with the Trump administration over a deal to save the company, however reports say that a deal to bailout Spirit has not come to fruition.
The bailout was disagreed with by some in the White House, with advisers to the president said to not have been convinced over how to appropriately fund the cash injection to keep Spirit afloat.
Spirit Airlines could dissolve as soon as today and leave passengers who have already booked tickets stranded at airports around the country
The struggling airline has faced bankruptcy for almost two years, but was able to survive based on the assumption that jet fuel prices would remain stable and that it would be able to maintain its passenger capacity at 80 percent, hoping to exit restructuring in early summer.
But since the war with Iran began earlier this year, jet fuel prices have nearly doubled in large cities such as New York, Houston, Chicago and Los Angeles, and the airline operated at an average capacity closer to 74 percent in the last fiscal quarter.
After attempting to negotiate a bailout with the Trump administration, some Spirit bondholders came out against the deal, feeling it would ‘hurt them economically’, sources told WSJ.
President Trump indicated an openness to saving the company when he spoke to reporters on Friday, but said he would only agree if it was a ‘good deal.’
‘If we can help them, we will. But we have to come first. We’re first,’ Trump said. ‘I would like to save the jobs.’
Spirit has not formally announced it is ceasing its operations, and has said in recent weeks that it is operating normally and continuing to operate flights. The Daily Mail has contacted Spirit Airlines for comment.
President Trump said on Friday he was open the company, but said he would only agree if it was a ‘good deal’
Spirit has been facing combined pressures of higher operating costs and greater competition, which have made the company’s situation dire
Known for its eye-catching yellow branding and cheap, no frills flights, reports of an abrupt collapse of Spirit has sent many passengers searching for an alternative.
Octavia Burrage, 29, told the Detroit Free Press that she was stunned by the sudden cease of the company’s flights, saying: ‘I’m really just in shock and disbelief.’
Burrage said she ‘absolutely loves’ Spirit, and said she was always thankful for its ‘reasonable prices’ at a time when airline costs have soared.
Gonzalez, who said she has likely been left stranded in Los Angeles on Friday night, said she would opt to fly with Spirit ‘every time’, saying that it was ‘those prices’ that kept her coming back.
Jesse Garrett, 38, of Detroit, added that in his opinion, ‘it’s the best airline we got.’
‘I ride them before I ride any other flight. I’d put my bottom dollar with Spirit,’ Garrett said.
Known for its eye-catching yellow branding and cheap, no frills flights, reports of an abrupt collapse of Spirit has sent many passengers searching for an alternative
With Spirit reportedly set to close, its rival airlines say they are preparing to fill the void left by the carrier.
On Friday, United Airlines said it is ready to support Spirit customers across the country and will help its employees in the event of a shutdown.
American Airlines also implemented fare caps for economy tickets on non-stop journeys that it was overlapping with Spirit.
