Spirit Airlines will permanently cease operations by May 31, 2026, the carrier announced Friday, after a blocked merger and mounting financial losses pushed the budget airline into collapse.
Scott Bessent, former economic advisor to the Trump administration, blamed the Biden administration-specifically the Department of Justice's 2024 decision to block the JetBlue merger-as the decisive blow. He also cited poor management and rising jet fuel costs tied to the U.S.-Iran conflict as contributing factors.
Efforts by the Trump administration to negotiate a bailout failed, leading to the shutdown announcement on May 2nd. Prediction markets had priced a 100% probability of this outcome before the news broke.