There has been talk of Spirit Airlines shutting down amid bankruptcy for several weeks, with Donald Trump saying on CNBC in April that he would “love for someone to buy Spirit.” There were reports of a possible $500 million bailout from Washington that never materialized.
Now, The New York Times reports that the airline is “preparing to shut down after failing to strike a deal for a financial lifeline from the Trump administration.”
This came after the Wall Street Journal reported that the company was going to shut down. Amidst all this, a Spirit spokesperson told the Times that “the airline was operating as normal,” declining to comment on the reports.
Here’s what we know so far:
When will Spirit Airlines shut down?
This is unclear at the moment. This is not an official shutdown yet – there are reports that the airline is preparing to close.
Why is Spirit Airlines potentially shutting down?
There are several reasons for this, including a crowded market and fuel prices that have skyrocketed in recent months.
What could happen to your Spirit Airlines tickets?
Here’s more from USA TODAY:
Airlines sometimes offer discounted “rescue fares” for stranded passengers when one of their competitors goes out of business, but they are not always cheap or readily available.
Travel insurance may also not cover bankruptcy as a reason for a claim, so make sure you know what your policy covers before relying on your insurance.