Spirit Airlines shutting down after failed effort at government rescue deal

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 bondholders, including Ken Griffin's Citadel and Ares Management Corp., had opposed the deal, U.S. officials previously told CBS News. The airline industry faces higher costs due to rising energy prices, prompting carriers to raise fares and cut unprofitable routes. By the time of Spirit's first bankruptcy filing in November 2024, the company had lost more than $2.5 billion since the start of 2020. …