Transportation Secretary Sean Duffy said Saturday the Trump administration made a “significant effort” to find a way to prevent Spirit Airlines from being shut down, but it could not be accomplished.
“There were a number of ideas being floated on how the government could step forward and be helpful to Spirit Airlines,” Duffy said at a news conference at Newark Liberty International Airport on Saturday, May 2. “The president was like a dog with a bone trying to find a way to save the soul.”
There were talks about a possible $500 million bailout for the low-cost airline. Trump was concerned about Spirit Airlines’ employees and its customers, Duffy said.
“In the end, it was a lender issue,” Duffy said. “They have the final say on whether they want to do a deal with the government, but even from the government’s point of view, we don’t have half a billion dollars in the spare account many times that we can put into a bailout of an airline. So, there was some creative thinking on how that could happen. … In the end, a deal couldn’t be done.”
Spirit was in ‘serious trouble’ long before the shutdown
Low-cost airlines had approached the Trump administration earlier in the week seeking $2.5 billion in aid to offset the increased price of jet fuel. But Spirit was in serious trouble long before the war with Iran, Duffy said.
As far as other airlines seeking government aid, “I would say that at this point, I don’t think it’s necessary,” Duffy said. “They have access to cash.”
Spirit Airlines filed for bankruptcy in August 2025 – its second in less than a year. Duffy said Spirit’s troubles were compounded by the Biden administration’s rejection of a 2024 merger attempt between Spirit and JetBlue Airlines.
The Justice Department filed a lawsuit to block the merger in 2023, saying it would reduce competition and raise rents. In January 2024, a federal district judge sided with the government and blocked the deal, saying it violated antitrust laws.
What should stranded soul travelers do now?
Other airlines agreed to help Spirit employees and customers who may have been stranded mid-trip because of the shutdown, Duffy said. Delta, JetBlue, Southwest and United Spirit are among the airlines setting ticket prices for customers who need to book new flights in place of canceled Spirit flights.
Depending on the airline, passengers had from 72 hours to two weeks to take advantage of the price discount. Duffy advised travelers to “do it sooner rather than later.”
“I spoke to airline CEOs in hopes that this could happen this morning,” Duffy said, “and I’m grateful they all saw an opportunity to take advantage of this situation to harass passengers.”
“I think after today, we’re going to see a strong, competitive market in our airline industry and we’re going to continue to focus on pricing,” Duffy said.
Contributing: Eve Chen and Zack Visscher; reuters