Spirit Airlines has been in bankruptcy proceedings since last August. (archive image)Image: www.imago-images.de
The US low-cost airline Spirit has been struggling with turbulence for years. The increase in the price of kerosene due to the Iran war drove the airline into bankruptcy. An aid campaign by Donald Trump failed.
May 2, 2026, 2:04 p.mMay 2, 2026, 2:04 p.m
The US low-cost airline Spirit Airlines is at an end despite rescue attempts by President Donald Trump’s government. The airline announced that the orderly cessation of flight operations had begun. All flights have been canceled and customer service is no longer available. Trump had brought up a solution in which the American state should take over shares in Spirit in return for a rescue loan.
According to media reports, it was about a financial injection of around $500 million, after which the government could have received a share of up to 90 percent in Spirit. Trump emphasized on Friday that the state should be treated as a priority creditor. According to reports, other donors did not agree to the terms and the talks ended without results.
Expensive kerosene
Since August last year, Spirit has already been in its second insolvency proceedings within a short period of time. The airline originally planned to exit in the summer with lower debt. But then these plans were torpedoed by the sharp rise in kerosene prices during the Iran war. The “sudden and sustained” increase left no other option than to stop operations, emphasized Spirit boss Dave Davis. Airlines commonly hedge against risks such as fluctuations in the price of jet fuel, but these instruments also cost money.
The airline asked passengers with tickets for upcoming flights not to go to the airport. Passengers should get the money back for their booked flights. According to media reports, passengers whose flights were canceled remained stranded at some US airports on Friday. The station WWJ Newsradio 950 showed around 200 passengers at the gate in Detroit whose flight to Los Angeles was canceled. Other airlines announced that they wanted to help Spirit customers. United and Southwest, for example, are offering special fares for people with tickets for canceled Spirit flights.
Failed takeover
The crisis at Spirit is considered home-made. The boss of the much larger competitor United Airlines, Scott Kirby, said, The problem lies in the business model – and the high kerosene prices have only accelerated the development. Spirit was supposed to be taken over by rival JetBlue in 2022 – but competition watchdogs from then-President Joe Biden’s administration took it to court and a judge blocked the deal.
Trump likes to help US companies
The US government had supported the aviation industry in times of crisis, such as after the terrorist attacks of September 11, 2001 or during the corona pandemic – but intervention in favor of a single company would be an unusual action.
In his second term, however, Trump demonstrated an increased willingness to let the state take over shares in companies in return for financial aid. The US government received a share of around ten percent in the chip giant Intel as compensation for billions in subsidies that had already been promised free of charge (Watson reported). (dpa)