NEW YORK — Spirit Airlines shut down on May 2 after a proposed federal rescue effort was abandoned, ending operations at a carrier that at one point ran more than 800 flights per day. About 17,000 employees lost their jobs as a result of the shutdown.

President Trump had proposed that the federal government rescue the airline by taking a large ownership stake. Some of Spirit's creditors balked at having their claims subordinated to the U.S. government, and United Airlines objected to the rescue effort, citing a financial interest in the removal of a low-cost rival from the market. Trump and his colleagues ultimately gave up on trying to save the carrier.

Spirit had not turned a profit since before the COVID-19 pandemic and was heavily indebted. The airline filed for bankruptcy protection twice in 2024 and 2025. Earlier this year, it was hoping to emerge from court supervision with plans to slim down and return to profit in 2027.

Between the end of February and early April 2025, the price of jet fuel rose by more than 90%. Over the same period, Spirit's financial losses increased and its cash reserves decreased.

The airline grew rapidly during the early 2000s and made a profit through 2019. Its base fares were frequently the lowest among airlines, and it operated a fleet of relatively new aircraft with a good safety record. A 2024 study by the Department of Transportation's Office of Inspector General noted that Spirit's bargain prices prompted legacy carriers to reduce their cheapest fares more than competition from other low-cost carriers had previously done.

Spirit's business model targeted budget-conscious travelers. "We are aiming for customers who pay out of their own pocket," Spirit Airlines CEO Ben Baldanza said. "Most want to spend money when they land. They want to stay at a nicer hotel."

Steven Rattner, a Wall Street financier and former Obama administration official who helped organize the 2008–09 bailout of General Motors, argued against federal intervention for the carrier. "Let Spirit liquidate and add its tombstone to the airline graveyard," Rattner said. The General Motors rescue by the Bush and Obama administrations cited the global financial crisis and the ensuing recession as force majeure.