Spirit Airlines is preparing to shut down after failing to secure a $500 million lifeline from the Trump administration, two sources confirmed. The budget carrier reshaped US aviation with cheap tickets and fees for everything from boarding passes to seat selection, but couldn't overcome mounting challenges that ultimately grounded its operations.

The airline filed for bankruptcy twice in recent years and hasn't reported a profit since 2019, losing several billion dollars since then. Flight operations plummeted from 25,000 flights two years ago to just 12,000 in April 2026, as high fuel prices, pandemic recovery struggles, and engine defects crippled operations. Even a second bankruptcy restructuring couldn't save the struggling carrier.

Investors opposed the bailout terms that would have given the government 90% ownership, fearing they'd be left in a worse position if the airline failed. Some Republican lawmakers also objected. Transportation Secretary Sean Duffy questioned whether the bailout would save Spirit or just pour good money into an inevitable liquidation. The company hasn't specified when flights will cease or what arrangements will be made for passengers.