US low-cost carrier Spirit Airlines is winding down operations, the company announced on Saturday (local time), as it reeled under the weight of rising fuel prices and a government bailout dangled by US President Donald Trump fell through.
All Spirit Airlines flights were canceled as the discount carrier went out of business immediately. Passengers were advised not to go to the airport after airlines failed to secure a funding deal with the Trump administration.
Read also | Spirit Airlines Closes, Cancels All Flights: What’s Next for Customers?
Who is responsible for shutting down Spirit?
With Spirit deciding to shut down its operations, one particular lawmaker is now being blamed for shutting down the domestic carrier — Elizabeth Warren. Warren, a Democratic senator from Massachusetts (since 2013) and a prominent member of the Democratic Party, is accused of closing Spirit.
That comes after she questioned the potential use of government money after the US president said on April 23 that he was considering the administration’s purchase of Spirit Airlines. In a post on X, Warren wrote, “Donald Trump’s war with Iran caused skyrocketing fuel prices that ultimately hit Spirit Airlines.”
“What do Americans get out of this taxpayer bailout?” she added.
Warren was not alone in rejecting the US president’s decision to acquire Spirit. Sen. Ted Cruz, the Republican chairman of the Senate Commerce Committee, called the prospect of a government bailout for the discount carrier a “terrible idea.”
Despite Republicans rejecting the decision, social media users are apparently focusing solely on Warren and blaming her.
After reposting Warren’s 2022 tweet criticizing Fly Frontier’s merger with Spirit Airlines, a user on X wrote: “Are you happy now? Spirit Airlines just went out of business.”
Another user reposted her tweet from 2024, where Warren warned that a JetBlue merger with Spirit would lead to higher fares, writing: “Thank you Elizabeth Warren for killing Spirit Airlines, the low-cost airline for low-income consumers.”
Why did Spirit Airlines go out of business?
The U.S. government considered giving $500 million to Spirit in exchange for the rights to acquire up to 90 percent of the airline after it emerges from bankruptcy. But key creditors opposed the deal because it would give the government priority over their claims if the airline defaulted again.
The airline, whose biggest hubs were in Fort Lauderdale and Orlando, Fla., as well as Las Vegas, has struggled for years. But its problems worsened after jet fuel prices soared, triggered by the US-Israeli war against Iran, now in its third month. The conflict has largely affected the Strait of Hormuz, a key passage responsible for a fifth of the world’s oil and gas supplies.
Dave Davis, Spirit’s chief executive, said in a statement Saturday: “Sustaining the business required hundreds of millions of additional dollars in liquidity that Spirit simply did not have and could not procure,” adding: “This is tremendously disappointing and an outcome none of us wanted.”
Before the start of the Iran war in late February, Spirit Airlines was expected to file for bankruptcy in the summer after agreeing with creditors on a plan to reduce billions of dollars in debt and cut costs on its fleet. Higher fuel costs instead put carriers at risk of liquidation.
Read also | Inside the White House talks to save Spirit Airlines
The Minister of Transport announces measures to support passengers
Transport Minister Sean Duffy said the Government was putting steps in place to help passengers and staff affected by the shutdown. He added that several airlines, including United Airlines Holdings Inc., Delta Air Lines Inc., Southwest Airlines Co. and JetBlue Airways Corp., agreed to cut fares or offer lower fares to affected Spirit customers.
Duffy said the administration coordinated with airline partners to prevent passenger stranding, maintain connectivity on affected routes, keep fares under control and help Spirit employees find new job opportunities.
