The Trump administration made “a significant effort” to find a way to prevent Spirit Airlines’ shutdown on Saturday, but couldn’t pull it off, Transportation Secretary Sean Duffy said.
“There was a number of ideas being floated on how the government could step in and be helpful to Spirit Airlines,” Duffy said Saturday, May 2, in a news conference at Newark Liberty International Airport. “The president was like a dog on a bone trying to figure out a way to keep Spirit afloat.”
Talks had been ongoing about a possible $500 million bailout for the low-cost airline. Trump was concerned about Spirit Airlines employees and its customers, Duffy said.
“In the end, this was a creditor issue,” Duffy said. “They have the final say of whether they want to do a deal with the government, but also from the government’s perspective, we oftentimes don’t have a half a billion dollars laying around in a spare account that we can put into a bailout of an airline. So, there was creative thinking on how it could happen. … In the end, a deal couldn’t be reached.”
Spirit Had Been in ‘Dire Straits’ Long Before the Shutdown
Low-cost airlines had approached the Trump administration earlier in the week seeking $2.5 billion in aid to offset the increased price of jet fuel. But Spirit had been in “dire straits long before the war with Iran,” Duffy said.
As for other airlines seeking government assistance, “I would say that at this point, I don’t think it’s necessary,” Duffy said. “They do have access to cash.”
Spirit Airlines filed for bankruptcy in August 2025 — its second in less than one year. Spirit’s troubles were worsened by the Biden administration’s nixing of an attempted merger in 2024 of Spirit and JetBlue airlines, Duffy said.
The Justice Department sued in 2023 to block the merger, saying it would reduce competition and drive up fares. A federal district judge in January 2024 sided with the government and blocked the deal, saying it violated antitrust law.
What Stranded Spirit Passengers Should Do Now
Other airlines agreed to help Spirit employees and customers who might be stranded mid-trip by the shutdown, Duffy said. Delta, JetBlue, Southwest, and United are among airlines capping ticket prices for Spirit customers needing to book new flights to replace canceled Spirit flights.
Depending on the airline, travelers had 72 hours to two weeks to take advantage of the price breaks. Duffy recommended travelers “do it sooner rather than later.”
He had talked with airline CEOs “in anticipation that this could happen this morning,” Duffy said, “and I’m grateful that all of them didn’t look for an opportunity to gouge passengers to take advantage of this situation.”
“I think after today, we are going to see a stronger, competitive market in our airline industry, and we’re going to continue to look at pricing,” Duffy said.
Contributing: Eve Chen and Zach Wichter; Reuters
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