Spirit Airlines shutting down after rescue talks collapse
Summary
Spirit Airlines is closing down after talks with the U.S. government failed to secure a $500 million bailout. The airline blamed rising jet fuel costs due to the conflict involving the U.S. and Israel and has stopped all flights immediately.Key Facts
- Spirit Airlines was seeking a $500 million rescue deal from the Trump administration.
- The airline announced it is starting an orderly shutdown of its operations immediately.
- All upcoming Spirit flights are cancelled, and refunds may have to be claimed through credit card companies.
- Spirit recently emerged from a second bankruptcy before the U.S.-Israel conflict caused jet fuel prices to rise sharply.
- Jet fuel costs, which can be 40% of an airline’s expenses, have doubled since the conflict began in February.
- Spirit had been working on restructuring during bankruptcy by reducing flights and planes.
- The proposed government rescue would have given the U.S. almost 90% ownership of Spirit but faced opposition from Wall Street, Congress, and some cabinet members.
- Transportation Secretary Sean Duffy said a bailout would be throwing “good money after bad.”
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