Spirit Airlines’ possible, and imminent, closure explained

Update, May 1, 6:45 p.m.: the New York Times is reporting Spirit Airlines may cease operations at 3 a.m. 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 from last month indicated that the federal government might bail out the Florida-based airline for over $500 million and a 90 percent stake in the company. The airline is facing its second bankruptcy in two years, CNBC reports.

That deal with the federal government did not materialize, but President Trump told reporters on Friday that, “I guess we’re looking at [bailing Spirit out]. If we can do it, we’ll do it. No institutions been able to do it. I’d like to save the jobs, but we’ll have an announcement sometime today. We gave them a final proposal.”

This Tweet is currently unavailable. It might be loading or has been removed.

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

This Tweet is currently unavailable. It might be loading or has been removed.

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

This Tweet is currently unavailable. It might be loading or has been removed.

If the airline shuts down, people who have booked flights will likely get refunded by their credit card companies, CBS News reported. Those flying when and if the airline is grounded would likely have to book their connecting flights on another airline. Spirit competitors may offer “rescue fares” to those flyers, possibly allowing them to reach their destination at a discounted price. If Spirit shuts down, the airline’s frequent flyer miles will likely be worthless.

This Tweet is currently unavailable. It might be loading or has been removed.

Spirit is often the butt of jokes for its bare-bones (though inexpensive) service — they charge for all carry-on luggage and do not offer free water or snacks.

This Tweet is currently unavailable. It might be loading or has been removed.