Spirit Airlines is preparing to cease operations after the discount carrier ran out of cash. Spirit Aviation Holdings Inc. is currently laying the groundwork to shutter its operations as it struggles to secure funding to maintain its business.
The low-fare airline had been attempting to secure a $500 million lifeline from the Trump administration. However, negotiations over the government aid package stalled after bondholders balked at the terms and failed to align with the U.S. government on a bailout plan.
The company has struggled for years to increase post-pandemic demand. These difficulties were further compounded by the war in Iran, which pushed up jet fuel costs and contributed to the company's financial instability.