American budget carrier Spirit Airlines has abruptly shut down operations, cancelling all flights nationwide after failing to secure a last-minute government bailout. In the latest development, Democratic Senator Elizabeth Warren facing online backlash over her stance on the proposed rescue.
The airline announced on Saturday that it would cease operations immediately, advising passengers not to head to airports. The move follows the collapse of a proposed $500 million bailout plan linked to the administration of US President Donald Trump.
According to company statements, all flights and customer service operations have been halted. The airline thanked passengers for their support over its 34-year run, while warning that around 17,000 jobs could be impacted.
Spirit’s downfall comes after mounting financial stress, including rising fuel prices, operational setbacks, and failed restructuring efforts.
What went wrong for Spirit?
Spirit, known for its low fares and no-frills model, had been struggling for some time. The airline had entered bankruptcy twice within a year and faced additional pressure from:
- A blocked acquisition attempt by JetBlue
- Aircraft groundings due to engine issues
- Increasing competition from larger airlines offering similar “basic economy” fares
- A shift in consumer preference toward more premium travel experiences
These factors, combined with surging fuel costs, pushed the airline toward liquidation when bailout negotiations fell through.
The Elizabeth Warren angle
Senator Warren has emerged as a central figure in the political fallout. She had publicly questioned the idea of using taxpayer money to rescue the airline after Trump floated the possibility of a government-backed acquisition.
In a post on X, Warren said: “Donald Trump’s war with Iran caused the sky-high fuel prices that finally did Spirit Airlines in.” She also raised concerns about the bailout itself, asking: “What do the American people get out of this taxpayer bailout?”
Warren was not alone in opposing the bailout. Republican Senator Ted Cruz also criticised the proposal, calling it a “terrible idea” and questioning government intervention in private business.
The shutdown has disrupted travel across major US routes, including cities like New York, Miami, Detroit, and Los Angeles, as well as destinations in Latin America and the Caribbean. Passengers have been advised to seek refunds and alternative arrangements, as no further services will be provided by the airline.
