Mission accomplished — depending on what the mission was
/Spirit Airlines is reportedly set to cease operations at 3am on Saturday after a bailout from President Trump has failed to materialize.
The airline, which began air operations in 1990, had been hoping for a $500 million lifeline from the federal government, but the deal has not been finalized in time due to financial complications, reports the Wall Street Journal.
Sources told the outlet that the budget airline has failed to get sufficient support from bondholders and the government to secure the funding before running out of cash.
The collapse of the airline could leave passengers stranded across the nation, and places over 14,000 jobs at risk.
The carrier previously filed for bankruptcy twice between November 2024 and August 2025, and it currently remains under Chapter 11 protection.
March 4, 2024:
This tweet aged very poorly. Sen. Elizabeth Warren & the Biden Administration essentially bankrupt Spirit Airlines by preventing a merger with JetBlue that would have saved the airline. Elizabeth Warren was very very very wrong about this. https://t.co/0t9hqKBwbA
— Izengabe (@Izengabe_) May 1, 2026
JetBlue and Spirit are ending their $3.8 billion merger plan after a federal judge blocked the deal
JetBlue Airways and Spirit Airlines are ending their proposed $3.8 billion merger weeks after a federal judge blocked the deal, saying it would hurt consumers who depend on Spirit’s lower fares.
The Justice Department sued to block the merger last year, saying it would reduce competition and drive up fares, especially for travelers who depend on low-fare Spirit.
In January, a federal district judge in Boston sided with the government and blocked the deal, saying it violated antitrust law.
“On Monday, the Justice Department took a victory lap.”
“Today’s decision by JetBlue is yet another victory for the Justice Department’s work on behalf of American consumers,” Attorney General Merrick Garland said in a statement. “The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices. We will continue to vigorously enforce the nation’s antitrust laws.”
A JPMorgan Chase analyst said in January that he couldn’t see a viable path for Spirit on its own to return to profitability any time soon.
The collapse of the sale to JetBlue could leave Spirit in a precarious position, facing looming debt payments while a portion of its planes are grounded by engine problems.
Unlike bigger airlines that attract more upscale passengers — and now offer their own bare-bones fares to compete with budget carriers — Spirit has not recovered from the pandemic. It lost $447 million last year and $1.9 billion since the start of 2020.
A JPMorgan Chase analyst said in January that he couldn’t see a viable path for Spirit on its own to return to profitability any time soon.
Shares of Spirit Airlines Inc. closed down 11% and have fallen more than 60% since U.S. District Judge William Young’s ruling against the merger on Jan. 16. Shares of JetBlue Airways Corp. rose 4%.
So much for lower fares and increased competition.