Update: Early Saturday, Spirit Airlines announced it has begun winding down operations and is canceling all flights after failing to secure a federal bailout, the carrier said, following efforts to reach an emergency funding deal.
Spirit had been preparing to halt service as soon as Saturday unless a last-minute intervention materialized, CBS News has learned. Talks over a proposed $500 million government assistance package stalled after bondholders rejected the terms, leaving the airline without a rescue plan.
Administration officials were briefed that Spirit planned to cease operations within 24 hours and that there would be no additional government push for a bailout, according to sources familiar with the discussions. When asked about a bailout Friday, President Trump said, “Well, I guess we’re looking at it. If we can do it, we’ll do it but only if it’s a good deal,” and added that the administration had presented a final proposal.
Insiders had warned that Spirit’s remaining cash was expected to last only a few days, increasing the urgency of negotiations. Despite the looming deadline, Spirit continued to operate normally on Friday, with company sources emphasizing that safety and completion of scheduled flights were the immediate priorities.
A Spirit spokesperson declined to discuss ongoing negotiations, offering only a brief statement that “Spirit is operating as usual.” Employees at the airline’s Dania Beach, Florida, headquarters spent Friday awaiting news about the company’s future and their jobs; while there had been no official company-wide communication about next steps, many staffers said they were bracing for the worst.
Spirit serves more than 40 U.S. cities and flies to destinations in Central and South America, with its primary hub at Fort Lauderdale–Hollywood International Airport. Industry analysts warn that a sudden exit by the low-cost carrier would have repercussions across the domestic market, likely reducing capacity on routes the airline currently serves and putting upward pressure on fares. Passengers with upcoming Spirit bookings would be left to find alternate travel arrangements.
The situation remained fluid as parties tried to resolve outstanding financial and creditor issues. Reporting for this story was led by Kris Van Cleave, with contribution from Megan Cerullo. Updated May 2, 2026, 2:54 AM EDT.