Spirit Airlines shutting down after failed effort at government rescue deal

MoneyWatch Spirit Airlines shutting down after failed effort at government rescue deal .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Megan Cerullo, Megan Cerullo Reporter, MoneyWatch Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting. Read Full Bio Megan Cerullo, Kris Van Cleave, Kris Van Cleave Kris Van Cleave Emmy Award-winning journalist Kris Van Cleave is the senior transportation correspondent for CBS News based in Phoenix, Arizona, where he also serves as a national correspondent reporting for all CBS News broadcasts and platforms. Read Full Bio Kris Van Cleave, Jennifer Jacobs Jennifer Jacobs Senior White House reporter Jennifer Jacobs is a senior White House reporter at CBS News. Read Full Bio Jennifer Jacobs Updated on: May 2, 2026 / 2:35 AM EDT / CBS News Add CBS News on Google Spirit Airlines announced early Saturday morning that it is ceasing operations after the budget carrier failed to secure a $500 million federal bailout. Spirit Aviation Holdings, the airline's parent company, said in a news release that it "regretfully announced" that it had "started an orderly wind-down of operations, effective immediately.""All Spirit flights have been cancelled, and Spirit Guests should not go to the airport," the airline said. The Florida-based airline, which has filed twice for bankruptcy since 2024, recently faced surging costs in jet fuel due to the Iran war. CBS News reported on Friday that Spirit planned to shut as early as Saturday. The Trump administration's proposed bailout would have given the U.S. government a 90% stake in the airline. Spirit's cash reserves had dwindled in recent days as talks with the government broke down, according to multiple sources familiar with the discussions.Some of Spirit's b...