Spirit Airlines: What we know so far and how Philadelphia could be affected
The budget airline could cease operations after running out of money and failing to secure operational funding, according to a new report.
Spirit Airlines is bracing for impact.
The budget airline, known for its yellow planes and “bare-fare” pricing model, is preparing to cease operations after running out of money and failing to secure operational funding, the Wall Street Journal reported Friday.
When Spirit’s fate initially looked bleak, citing rising jet fuel costs prompted by the Iran war, the Trump administration said it would initiate a rescue attempt, with details including a potential $500 million loan from the federal government. But those negotiations appear to have stalled, according to multiple news outlets.
“We’re looking at it. If we could do it, we’ll do it,” Trump said Friday about a potential taxpayer-funded takeover. “But only if it’s a good deal.”
A lawyer for Spirit told a U.S. Bankruptcy Court last week that the airline was in advanced talks with the government on a financing deal that would allow it to exit Chapter 11 protection.
There’s still a lot up in the air. And a lot of risk, depending on how things pan out.
Spirit supporters, including airline labor groups, say allowing the airline to collapse would hurt the company’s workers and push rising flight fares even higher. Republican and Democratic lawmakers have also raised concerns about using federal funding to bail out a company unlikely to recover.
Spirit’s struggles aren’t new. The company has filed for bankruptcy protection twice in three years.
How could Philadelphia be impacted?
Last year, Spirit cut routes, including a couple out of PHL, because of its financial struggles.
From Philadelphia, the airline cut service to Atlanta and Los Angeles entirely. The airline had 1,500 fewer flights through Philadelphia in 2025 compared with 2024. Spirit was among the top-five most flown airlines out of PHL in 2024, bringing more than 1.7 million passengers through Philadelphia, but it dropped off that list last year.
Between three and seven Spirit Airlines flights depart the Philadelphia airport each day, according to airport spokesperson Heather Redfern.
The flights go to Charlotte, N.C., Detroit, Orlando, Fla., Miami, Fort Lauderdale, and San Juan, Puerto Rico, all destinations that are served by other carriers, Redfern added.
“Travelers should check directly with the airline for the latest updates on their flights,” she said.
Are there any federal laws in place for airline closures?
If an airline shuts down completely, it falls under the Department of Transportation’s purview.
The DOT will monitor shutdowns, like what might happen to Spirit, to make sure customers are given flight refunds.
Under federal law, customers are entitled to refunds if a flight is canceled and the airline can’t accommodate them. But this becomes trickier to enforce when an airline claims bankruptcy.
There have been a few instances where the DOT had to step in following an airline collapse over the years. In 2022, Southwest Airlines didn’t shut down entirely, but a systemwide collapse canceled more than 10,000 flights over the winter holiday season, leaving millions stranded.
The DOT audited Southwest’s systems to make sure customers were refunded for their flights. The DOT went on to fine Southwest Airlines for the incident, but the Trump administration ended up waiving those fines last year.
Staff writers Erin McCarthy, Lizzy McClellan Ravitch, and the Associated Press contributed to this article.
