Spirit

Passengers have been left stranded at airports without their luggage after the immediate closure of a major airline cancelling all flights with no customer service

Passengers have been left stuck without their bags after the closure of a major airline.

One of America’s largest low-budget carriers, Spirit Airlines, announced its closure “effective immediately”.

The airline said in a statement: “All Spirit flights have been cancelled and Spirit guests should not go to the airport.”

As a result, customers could not get connecting flights and have been left stranded at airports across the country, with some passengers unsure where there bags are located.

On Sunday, a day after the airline closed, some passengers are still waiting at the airport for their luggage.

One passenger explained they ‘don’t know what to do’ as they have been left waiting for more news on the whereabouts of their belongings.

The traveller told NBC6 “I cannot fly because I don’t have my bags with me, so I’m just stuck here.”

Grace Florez was heading from North Carolina to Colombia but got stuck in Fort Lauderdale after her connection was cancelled.

She still doesn’t know where her bags are nearly two days later.

“It’s difficult, and it’s frustrating,” she said. “I just go with the flow. I don’t stress myself, but I need to work tomorrow.”

As the airline has been left with no customer service, she is left with no answers.

“I’m clueless,” she said. “I hope they are somewhere back there. I don’t know what to do. Other than waiting.”

Spirit Airlines, a budget carrier in the United States, has begun winding down operations, cancelling all flights, after talks with the Trump administration to secure a $500m bailout failed. Experts say a spike in aviation fuel prices from the US-Israel war on Iran dealt the final blow to the struggling airline that pioneered the ultralow-cost carrier model.

The airline’s shutdown after 34 years has left some 17,000 staff members unemployed, many passengers stranded, and raised doubts about the future of budget air travel.

How did Spirit Airlines reach this point? Did the US-Israel war on Iran deliver the final blow?

Here’s what we know:

What has Spirit Airlines said?

On Saturday, Spirit Aviation Holdings, the airline’s parent company, said the company had started to wind down operations.

“Spirit Aviation Holdings, Inc … today regretfully announced that the Company has 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 company said in a statement on Saturday.

The statement added that, despite its efforts, “the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook”.

Spirit Airlines, whose airfares were lower compared with other US airlines, had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats, according to the latest data from Cirium, an aviation analytics firm.

The carrier’s parent firm started as a long-haul trucking company in 1964. It shifted to aviation around 1983. The carrier rebranded from Charter One Airlines to Spirit in 1992.

How did Spirit Airlines reach this point?

The airline had been struggling financially for years and had filed for bankruptcy twice – in November 2024 and then in August 2025 – due to continued losses, high debt, and intense competition from other airlines.

According to a May 2 report by the Reuters news agency, Spirit had recently reached a deal with its lenders that would have helped it emerge from its second bankruptcy by late spring or early summer.

But the war on Iran, which led to a significant increase in aviation turbine fuel (ATF) prices, added to Spirit’s financial struggles and complicated its bankruptcy exit.

Spirit’s restructuring plan assumed ATF costs of about $2.24 a gallon in 2026 and $2.14 in 2027, but prices had climbed to about $4.51 a gallon by the end of April, leaving the carrier unable to survive without new financing.

A Spirit board meeting ended without an agreement to rescue the company, a person close to the discussions told Reuters late on Friday.

US Transportation Secretary Sean Duffy told Reuters he tried to get many airlines to buy Spirit but found no takers. “What would someone buy?” Duffy asked. “If no one else wants to buy them, why would we buy them?”

US President Donald Trump also said he had tried to bail out the airline with a $500m financing package.

“If we can help them, we will, but we have to come first,” Trump told reporters. “If we could do it, we’d do it, but only if it’s a good deal.”

However, a creditor close to the deal told Reuters, “The Trump administration made an extraordinary effort to try and save Spirit, but you can’t breathe life into a corpse. Given that, the company should make its intentions clear for the sake of its customers and employees.”

Anita Mendiratta, special adviser to the UN Tourism secretary-general, noted that while war and geopolitical instability may not have caused Spirit’s collapse, they likely delivered the final blow.

“Surging fuel costs exposed the vulnerability of airlines operating on thin margins with little room for shock absorption,” she told Al Jazeera.

“Spirit’s weaknesses were already there – it had already gone through two bankruptcy filings in the two years prior; global instability simply accelerated the inevitable. In today’s aviation market, volatility is no longer an exception; it is the operating environment,” Mendiratta said.

Are other airlines also under pressure due to the Iran war?

The war on Iran has disrupted global oil and gas prices, with Brent crude rising above $111 a barrel on Friday. The high crude oil prices have also caused ATF prices to rise, affecting budget airlines badly.

Across the globe, airlines have been increasing prices to reflect the high ATF prices, and some have also reduced their flight operations.

German airline Lufthansa said last month it cancelled 20,000 flights in a bid to protect itself from the soaring ATF costs.

On Friday, leading Indian carrier Air India said it has increased fuel surcharges on all flights, adding that it will reduce 100 flights a day across its domestic and international routes.

Mendiratta noted that the aviation industry is on alert as airlines carrying high debt, facing fuel cost volatility, labour cost pressures, fleet constraints, and sustained pricing pressure remain exposed [to the war], especially those operating through a low-cost carrier model.

“What happens next is a defining test of aviation leadership. The rapid response from rival airlines to protect stranded passengers reflects an industry that understands its most valuable asset is not aircraft or market share, it is customer trust [both traveller and cargo],” she said.

“Just as importantly, how airlines support displaced employees, reassure markets, and reinforce operational stability will shape confidence in the sector’s long-term recovery,” she added.

May 2 (UPI) — Spirit Airlines closed Saturday morning, with no options for those already booked on the airline.

“Unfortunately, despite the company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” the airline said in a statement. “With no additional funding available to the company, Spirit had no choice but to begin this wind-down.”

All flights are canceled, and passengers shouldn’t go to the airport, Spirit said. Those who booked directly with the company will get refunds, but others should reach out to their travel agent or booking site, the company said.

The company reported around 17,000 employees as of the shutdown.

“We’ve activated our airline partners to ensure passengers are not stranded, communities maintain route access, fares do not skyrocket, and Spirit’s workforce is connected to new job opportunities,” Secretary of Transportation Sean Duffy said in a statement.

United, Delta, JetBlue and Southwest are all capping ticket prices for Spirit customers who now need to rebook cancelled flights, Duffy’s statement said. But those prices will only be available for 72 hours.

Spirit declared bankruptcy in 2024 and 2025. The company hoped to overcome its most recent bankruptcy, but high fuel prices brought on by the war in Iran have stymied those plans.

Last week, President Donald Trump said the government could buy the airline, and it has been working on a $500 million rescue plan that would give the government a large ownership stake. But the company couldn’t get support between bondholders and the government for the deal.

Trump told reporters at the White House Friday that an announcement about Spirit was coming within the next couple of days.

“I guess we’re looking at it. If we could do it, we’d do it, but only if it’s a good deal,” Trump said about a bailout plan. “But if we can’t make a good deal – no institution’s been able to do it. I said I’d like to save the jobs. … I would say we’re driving a tough deal, but it’s one of those things. We will do it or we won’t.”

Spirit CEO Dave Davis explained the shutdown.

“The sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the company,” Davis said in a statement. “Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure. This is tremendously disappointing and not the outcome any of us wanted.”

Spirit customer Angela Moreno told NBC News that she was planning to fly from Fort Lauderdale to Nashville for a wedding Saturday.

“The whole family is going there from different states, so it’s very shocking,” she said. “There’s many people who cannot attend the wedding as of now.”

She said she’s struggling to find replacement tickets.

“They’re refunding the tickets, but the only tickets right now are $600,” she said. “I hope the best for those people who really needed that flight.”

Henry Hartevelt, airline industry analyst at Atmosphere Research Group, told The Washington Post that Spirit was struggling long before the war. Bad business decisions, overexpansion and loss of focus caused its internal issues, and increased competition from other budget airlines added to its woes.

Spirit’s core demographic earns less than $80,000 per year, and those customers took the brunt of the inflation hit during the COVID-19 pandemic, he added.

“So [there’s] no single cause of Spirit’s demise, but Spirit has been teeter-tottering on the verge of shutting down for a long time,” Harteveldt told The Post. “It’s very unfortunate. More than [17,000] people may lose their jobs if it does shut down, and we lose an airline and a source of price competition.”

US budget carrier Spirit Airlines shuts down after talks for a government bailout failed, leaving 17,000 workers jobless and many passengers stranded. Rising fuel prices from the US-Israel war on Iran partially blamed for Spirit’s rapid decline.

WEST PALM BEACH, Fla. — Spirit Airlines, an impish upstart that shook the industry with its irreverent ads and deep discount fares, announced Saturday that it has gone out of business after 34 years.

The ultra-low-cost airline that once operated hundreds of daily flights on its bright yellow planes and employed about 17,000 people said it had “started an orderly wind-down of our operations, effective immediately.”

Although Spirit had gone bankrupt twice before, the company said high oil prices, which have been rising because of the U.S.-Israeli war with Iran, made it impossible to stay aloft.

The airline said on its website that all flights have been canceled and customer service is no longer available.

“We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our guests for many years to come,” the announcement said.

U.S. Transportation Secretary Sean Duffy said Saturday that Spirit had a reserve fund set up for customers who bought directly from the airline to get refunds. People who bought from third-party vendors such as travel agents would have to seek refunds from them. He had a stark message for people flying with Spirit.

“If you have a flight scheduled with Spirit Airlines, don’t show up at the airport. There will be no one here to assist you,” Duffy said.

He said United, Delta, JetBlue and Southwest were offering $200 one-way flights for people who could confirm that they had Spirit confirmation numbers and proof of purchase for a limited time. Duffy also said other airlines would help with Spirit employees who might be stranded and would offer them a preferential application process as they look for work.

Spirit said in a statement that it was working to get more than 1,300 crew members to their home bases and that the final Spirit flight landed early Saturday at Dallas Fort Worth International Airport from Detroit Metropolitan Airport.

The company advised customers that they could expect refunds but there would be no help in booking travel on other airlines.

The Trump administration had considered a government bailout for the cash-strapped business to keep it from going under, but a deal was not reached. Of the potential bailout, Duffy said Saturday that “we oftentimes don’t have half a billion dollars laying around.”

President Trump had floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years with jet fuel prices soaring since the start of the Iran war.

‘They get you there’

Five Spirit flights were still showing as “on time” on Saturday morning on the departure board in Atlanta. A trickle of passengers who hadn’t heard the news were still showing up.

“What!?” exclaimed Taylor Nantang as she, her husband and four children arrived for a Saturday afternoon Spirit flight from Atlanta to Miami for a spur-of-the-moment vacation. The family had driven down from Tennessee to the Atlanta airport.

“So the whole airline at every airport is out of business?” asked Nantang. “Oh my, that’s crazy.”

Other passengers wondered whether the airline would still answer its customer service phone, or when the refunds for canceled flights might arrive on their credit cards.

Joshua Sigler, who had bought a ticket Friday for a flight Saturday to Miami, said he would just return home after learning of the cancellation rather than try to take advantage of deals other airlines were offering to stranded Spirit passengers. He said he had gotten no communication from Spirit, which he had flown multiple times in the past.

“They get you there,” he said of his Spirit travels. “It was cheap.”

Waking to the news

Former Spirit flight attendant Freddy Peterson was on a Spirit flight from Detroit that arrived in Newark, N.J., around 11 p.m. Friday. He said that despite rumors flying on social media Friday, things seemed kind of normal, with more than 200 passengers on the plane.

“All our aircraft were packed,” he said.

Peterson, 60, said he set his alarm clock for 3 a.m. Saturday to check the company website at the hour of the rumored shutdown and learned all Spirit flights were canceled. He said Delta Air Lines brought him and another flight attendant back to Atlanta on Saturday morning, with Peterson leaving from there to drive to his home in Shellman in southwest Georgia.

“I’ll probably do my boo-hoo crying and all that other stuff once I get in the car.”

Peterson said he had been a flight attendant with Spirit for 10 years and the company has “done wonders for me.” He said the airline’s reputation for bargain-basement chaos was largely undeserved, but he did fault management for not communicating with the employees in the closing days, saying a promised employee town hall was canceled.

Bailout fizzles

As late as Friday afternoon, Trump had said his administration was looking at a bailout for Spirit and had given the budget carrier a “final proposal” for a taxpayer-funded takeover.

Spirit proudly disrupted the penny-pinching portion of the airline industry with its no-frills, low-cost flights and provocative ads like its “Check Out the Oil on Our Beaches” campaign after the Deepwater Horizon disaster in 2010, referencing suntan oil but alluding to the massive spill of crude along the Gulf Coast.

But Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had lost more than $2.5 billion since the start of 2020.

The budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion in debts and $8.6 billion in assets, according to court filings.

White House blames Biden

The White House had blamed the Biden administration for Spirit’s tenuous financial situation, noting that President Biden opposed a proposed merger between Spirit and JetBlue in 2023. On Saturday, Trump administration officials took to social media to amplify voices of conservative critics who faulted that decision.

On Saturday, Duffy concentrated blame on Biden as well as Duffy’s predecessor, Pete Buttigieg. “Many at the time said that this was a disaster. This merger should have been allowed,” he said.

Tad DeHaven, a policy analyst at the Cato Institute, a libertarian think tank, said the Trump administration also bears responsibility, arguing that the airline’s latest crisis reflected a chain reaction of policy missteps rather than a single decision. He pointed specifically to Trump’s decision to strike Iran as “bad foreign policy,” noting the conflict drove up jet fuel prices and therefore Spirit’s operating costs.

“They were already in trouble,” DeHaven said, describing the situation as “a compounding effect in terms of policy.”

Supporters of a rescue including labor unions representing Spirit’s pilots, flight attendants and ramp workers said a collapse would put thousands of Americans out of work and hurt consumers by reducing airline competition and increasing airfares. About 17,000 jobs could be impacted, according to Spirit lawyer Marshall Huebner.

Budget-conscious and leisure travelers are likely to feel Spirit’s absence the most, especially in places where the airline has a big footprint such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando.

The carrier flew about 1.7 million domestic passengers in February, roughly half a million fewer than during the same month a year earlier, according to aviation analytics firm Cirium. Spirit also has sharply reduced its capacity; about half as many seats had been available this month as in May 2024.

Madhani, Yamat, Amy and Catalini write for the Associated Press and reported from West Palm Beach, Las Vegas, Atlanta and Morrisville, Pa., respectively. AP writer Josh Funk in Omaha contributed to this report.

SPIRIT Airlines has confirmed it has officially shut down after all last-minutes attempts to save the company fell through.

Donald Trump on Friday had said he had offered a final proposal for a federal bailout.

But a deal was not made after talks hit a wall over a $500million rescue package.

American, United and Frontier Airlines have all offered to support any passengers left stranded by the closure.

It comes after the airline filed for bankruptcy for a second time.

“It is with great disappointment that on May 2, 2026, Spirit Airlines started an orderly wind-down of our operations, effective immediately,” the airline said in a statement on Saturday.

“All Spirit flights have been cancelled, and Spirit Guests should not go to the airport.

“We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our guests for many years to come.”

Spirit, like many other airlines, has been plagued with skyrocketing fuel costs as the Iran war continues, with some carriers raising fares and increasing checked bag fees.

“Unfortunately, despite the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” it said.

Some other budget-friendly airlines have asked the government for help as they face jet fuel price spikes.

Spirit’s collapse just a day after it was still selling tickets to travelers has left thousands stranded as all flights have been canceled.

In addition to this, 17,000 workers are now out of work including 14,000 airline employees and thousands of contractors.

Passengers with Spirit tickets will be getting automatic refunds if they booked directly with the airline using a debit or credit card.

Those who have tickets from travel agents must “contact the travel agent directly to request a refund.”

The airline added that it will not be able to help passengers re-book their flights with another airline.

However, rival carriers have offered help, with JetBlue offering passengers $99 one-way fares for those who have proof of a Spirit itinerary for the same route of travel until May 6.

The airline has urged stranded passengers to call 1-800-JETBLUE for help getting where they need to go.

In addition to this, JetBlue has capped basic fares at $299 or less on certain non-stop routes.

Similar moves are being made by United, Delta, and Southewest, the Department of Transportation confirmed.

“The Trump Administration is committed to taking care of you and your family when you fly,” said US Transportation Secretary Sean Duffy.

“In a matter of hours, we’ve activated our airline partners to ensure passengers are not stranded, communities maintain route access, fares do not skyrocket, and Spirit’s workforce is connected to new job opportunities.”

The department has outlined the ways that it and fellow airlines are assisting those affected by Spirit’s collapse from capped and reduced fares to refund advice and employee support.

Duffy has largely blamed former President Joe Biden for the airline’s collapse.

This is because a proposed merger between Spirit and JetBlue was blocked under the Biden administration in 2024 which Duffy called “a massive mistake” in a press conference on Saturday morning.

He added that President Trump was “like a dog with a bone” trying to find a deal to keep Spirit afloat but noted that the airline “was in dire straights long before the war in Iran.”

And it’s not just Spirit struggling financially, with The Association of Value Airlines seeking $2.5billion in federal help to keep discount airlines like Breeze and Frontier running amid high fuel prices.

Duffy has already rejected this level of funding and in his press conference, accused low-budget airlines of trying to piggyback on the generosity the Trump administration showed to save Spirit in trying to save it.

The collapse of the US-based budget carrier due to a doubling in jet fuel prices will cost thousands of jobs.

Low-cost US carrier Spirit Airlines has said that all of its flights have been cancelled as it started an “orderly wind-down of operations,” after a potential White House bailout fell through.

“Spirit Aviation Holdings, Inc., parent company of Spirit Airlines … today regretfully announced that the Company has 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 in a statement in the early hours of Saturday.

Spirit had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats, according to the latest data from Cirium.

The collapse of the carrier due to a doubling in jet fuel prices during the two-month-old Iran war will cost thousands of jobs. It is also a blow to US President Donald Trump, who had proposed $500m to save Spirit despite opposition from some of his closest advisers and many Republicans in Congress.

Spirit had reached a deal with its lenders that would have helped it emerge from its second bankruptcy by late spring or early summer. But those plans derailed after the US war on Iran triggered a spike in jet fuel prices, upending Spirit’s cost projections and complicating its bankruptcy exit.

A Spirit board meeting had ended without an agreement to rescue the company, a person close to the discussions told the Reuters news agency late on Friday.

“Unfortunately, despite the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” Spirit said in a statement announcing its “orderly wind-down”.

Trump on Friday said the White House had given Spirit and its creditors a final rescue proposal, after talks hit an impasse over a $500m financing package that would have helped the airline keep operating through bankruptcy.

“If we can help them, we will, but we have to come first,” Trump told reporters. “If we could do it, we’d do it, but only if it’s a good deal.”

Spirit’s restructuring plan assumed jet fuel costs of about $2.24 a gallon in 2026 and $2.14 in 2027, but prices had climbed to about $4.51 a gallon by the end of April, leaving the carrier unable to survive without new financing.

Transportation Secretary Sean Duffy told Reuters he had tried to get many airlines to buy Spirit but found no takers. “What would someone buy?” Duffy asked. “If no one else wants to buy them, why would we buy them?”

A creditor close to the deal said, “The Trump administration made an extraordinary effort to try and save Spirit, but you can’t breathe life into a corpse. Given that, the company should make its intentions clear for the sake of its customers and employees.”

No US carrier of Spirit’s size – it accounted for 5 percent of US flights at one point – has liquidated in two decades. Spirit helped keep fares lower in markets where it competed against major carriers.

Its collapse shows how the Iran war’s fuel-price shock has exposed weaker airlines. Across the globe, airlines have been increasing prices to reflect the high cost of jet fuel and some airlines have also cut flights.

German airline Lufthansa last month said it cancelled 20,000 flights in a bid to protect itself from the soaring cost of oil.

On Friday, Indian carrier Air India also said it has increased fuel surcharges on all flights and said it will cut 100 flights a day across domestic and international routes.

May 1 (UPI) — President Donald Trump on Friday said that his administration had made a “final” bailout offer to Spirit Airlines as reports suggest it is on the verge of shutting down.

Although Trump said his administration is still discussing a $500 million bailout for the beleaguered airline, its investors have not agreed to the government’s proposal and Spirit could shut down as soon as Saturday, The Wall Street Journal and CBS News reported.

Trump has for the past two weeks said the government would try to get involved to save the airline and its 7,500 employees, unveiling last weekend a plan to loan Spirit $500 million under the Defense Production Act and become its main debtor.

The price of jet fuel has doubled since Feb. 28 because of the war in Iran, raising costs for all airlines globally, but Spirit has been working to emerge from bankruptcy for the second time in a year and its financial plan has been completely upended.

“We’re looking at it,” Trump told reporters on Friday, hours after reports of the airline’s demise started to spread.

“If we could do it, we’d do it, but only if it’s a good deal,” he said. “No institution has been able to do it. I said I’d like to save the jobs but we’ll have an announcement sometime today … We gave them a final proposal.”

Spirit told a bankruptcy court on April 23 that its cash was “not going to last for very much longer” and that, without some sort of bailout, it would likely have to cease operations within a matter of days.

The Trump administration’s bailout plan — of which some Republicans and members of Trump’s administration have been critical — would give Spirit the loan it needs in exchange for the government becoming its largest debtor and potentially owning 90% of the airline.

The Fort Lauderdale-based airline told the South Florida Sun-Sentinel that it is “operating as usual,” and travelers at its main hub at Fort Lauderdale-Hollywood International Airport said that their flights had not been canceled.

Officials at Miami-International Airport also told the Sentinel that they had not been notified by Spirit that it was shutting down.

Spirit is said to have revolutionized air travel as one of the first of several value airlines that has managed to offer flights at rock-bottom prices, but it also has struggled since the COVID-19 pandemic.

The company flew less than half the number of flights in April than it had two years ago — it dropped from roughly 25,000 to 12,000 — and has not turned an annual profit since 2019, The New York Times reported.

Having renegotiated contracts with its employees, shook off engine defects that doomed parts of its fleet and charted a path forward, Spirit was expected to emerge from bankruptcy in better shape sometime this summer.

After the war in Iran launched, affecting oil and gas prices worldwide, the cost of jet fuel doubled and tanked the company’s financial plan.

In the event that Spirit does shut down, United Airlines, American Airlines and JetBlue Airways all have said they are preparing to assist the airline’s customers and employees, which includes helping customers to travel in places where they operate routes similar to Spirit, CNBC reported.

April 24 (UPI) — The Trump administration is working on a bailout of Spirit Airlines, which is in bankruptcy for the second time in a year, to keep it from shutting down.

President Donald Trump several times this week that the government may get involved in the situation — specifically highlighting his concerns about jobs and the airline industry — after increases in jet fuel cost made the airline’s situation even worse, CNBC and USA Today reported.

Spirit has not commented on the bailout negotiations, which would have to be approved by its creditors, but the administration has offered Spirit a $500 million loan, with the government receiving the right to own 90% of the company when it exits bankruptcy, CBS News reported.

“We’re thinking about doing it, helping them out, meaning bailing them out, or buying it,” Trump said on Thursday.

“I’d love to be able to save those jobs,” he said. “I’d love to be able to save an airline. I like having a lot of airlines so it’s competitive.”

Commerce Secretary Howard Lutnick has argued it is necessary for the government to step in and save Spirit because if it is shut down and liquidated during bankruptcy, at least 7,500 jobs will be lost.

The White House may use the Defense Production Act, which gives the government the ability to compel private companies to prioritize its contracts in the event of an emergency and to loan money to those companies, to give Spirit a loan.

The loan would make the government Spirit’s main debtor and, while the company is working its way through bankruptcy, the Department of Defense would use extra seats for transporting troops or moving other military cargo.

The union that represents Spirit’s ramp service employees, the International Association of Machinists and Aerospace Workers, urged the administration to prioritize employees at the airline, The Hill reported.

“IAM Union members at Spirit, and all frontline aviation workers, did not cause this crisis,” the union said in a statement.

“They should not be the ones forced to pay the price. Any federal assistance must prioritize protecting jobs, preserving pay and benefits, and maintaining the affordable air service that millions of Americans rely on,” the union statement said.

Spirit filed for chapter 11 bankruptcy protection in November 2024 after a judge blocked its proposed $3.8 billion merger with JetBlue Airlines in March of that year, and filed for bankruptcy again in 2025.

Spirit’s current bankruptcy plan includes the cost of jet fuel, which has roughly doubled for the company since the United States and Israel launched the war in Iran. The cost of fuel has also tanked their current business model, according to reports.

Spirit missed an interest payment this week, leading to it being warned that it could be in default with its creditors — to which Spirit has warned they may only have days to operate, which spurred the bailout talks.

The federal government already is working with the company’s creditors and has made a loan offer, CBS News reported, and Spirit has said it continues to operate normally, which includes deeply discounted flights.