Spirit Airlines grounded, leaving passengers scrambling
Spirit Airlines has announced that it will temporarily suspend operations after years of financial difficulties due to the recent rise in fuel prices.
Transportation Secretary Sean Duffy said the Trump administration made a “huge effort” to find a way to stop Saturday’s Spirit Airlines grounding, but was unable to pull it off.
“There were a lot of ideas floating around about how the government could step in and help Spirit Airlines,” Duffy said at a news conference Saturday, May 2, at Newark Liberty International Airport. “The president was like a dog on a bone trying to find a way to keep his spirit afloat.”
Talks continued about a possible $500 million bailout for low-cost airlines. Duffy said Trump was concerned about Spirit Airlines’ employees and customers.
“At the end of the day, this was a creditor issue,” Duffy said. “They have the final say on whether they want to make a deal with the government, but even from a government perspective, the $500 million that goes toward bailing out airlines is often not sitting in reserve accounts. So we had to think creatively about how we could make it happen. …In the end, we didn’t get a deal.”
Transportation Secretary says Spirit Airlines was in a ‘dire situation’
Low-cost airlines approached the Trump administration earlier this week seeking $2.5 billion in aid to offset rising jet fuel prices. But Spirit “was in dire straits long before the war with Iran,” Duffy said.
As for other airlines seeking government assistance, “I don’t think it’s needed at this point,” Duffy said. “They can get cash.”
Spirit Airlines filed for bankruptcy in August 2025, the second time in less than a year. Duffy said Spirit Airlines’ problems were made worse by the Biden administration’s cancellation of a planned 2024 merger between Spirit Airlines and JetBlue Airways.
The Justice Department filed a lawsuit in 2023 seeking to block the merger, arguing that it would reduce competition and soar freight rates. In January 2024, a federal district court sided with the government and blocked the deal, saying it violated antitrust laws.
Other airlines have also agreed to help Spirit employees and customers who may be stranded on their travels due to the grounding, Duffy said. Delta Air Lines, JetBlue Airways, Southwest Airlines and United Airlines are among the airlines that have capped ticket prices for Spirit customers who must book new flights to replace canceled Spirit flights.
Depending on the airline, travelers had between 72 hours and two weeks to take advantage of the price discount. Duffy advised travelers to “do it sooner rather than later.”
Mr Duffy said he had been speaking with airline CEOs “this morning in anticipation of something like this happening” and was “thankful that none of them took advantage of this situation to look for an opportunity to gouge passengers.”
“After today, we will see a stronger, more competitive market in the airline industry. We will continue to look at pricing,” Duffy said. “We will continue to look at our energy supply and jet fuel supply and try to make the best decisions forward-looking.”
Contributors: Eve Chen and Zach Wichter; Reuters
Mike Snyder is a national trends news reporter for USA TODAY. You can follow him on Threads, Bluesky, and X, and email him at: mike snyder & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com.
