Spirit Airlines is set to cease operations after negotiations to secure government and related financial support fail to produce an agreement, according to multiple reports. The low-fare carrier, which has faced years of financial pressure, had been seeking a $500 million lifeline involving the Trump administration. As talks continue to fall short, the airline is moving toward shutdown after rescue efforts collapse.
Several outlets report that the airline’s attempts to reach a bailout deal were unsuccessful, including discussions tied to government support and parallel negotiations with bondholders. CNBC reports that talks with bondholders this week did not result in a final arrangement that would allow the airline to continue operating.
BBC and The New York Times both describe the proposed $500 million government offer and note that the bailout discussions did not resolve in a way that would keep Spirit operating. The Globe and Mail similarly states that the U.S. government’s $500 million offer was part of the rescue effort but that the airline is preparing to stop operations after the talks fail.
