Spirit Airlines, the nation's leading budget carrier, has halted all operations after failing to secure a $500 million bailout from the Trump administration. The shutdown leaves 17,000 employees jobless and strands thousands of passengers.
This marks the first major U.S. airline collapse in 25 years. The company had filed for Chapter 11 bankruptcy twice since 2024, citing soaring jet fuel costs from the ongoing Iran conflict and mounting debt. No further federal aid is expected.
The airline's decision comes as a definitive end to weeks of uncertainty, with no last-minute financial maneuvers anticipated before the May 31 deadline.