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Spirit Airlines shutting down after failed effort at government rescue deal

Traveler arrives for Spirit Airlines flight, learns the company has shut down 02:57

Spirit Airlines announced early Saturday morning that it was ceasing operations after the budget carrier failed to secure a$500 million federal bailout.

Spirit Aviation Holdings, the airline's parent company, said in a news release that it "regretfully announced" that it had "started an orderly wind-down of operations, effective immediately."

"All Spirit flights have been cancelled, and Spirit Guests should not go to the airport," the airline said, adding that it would automatically process refunds for any flight that was purchased through the airline with a credit or debit card.

Department of TransportationSecretary Sean Duffy said Saturday that Spirit has a reserve fund to refund tickets to the original form of payment for travelers whose flights have been cancelled. People who booked with a third party, like a travel agent, should contact their point of purchase, Duffy said. The airline hasset up a websiteto answer questions regarding the shutdown process.

Some of Spirit's bondholders, including Ken Griffin's Citadel and Ares Management Corp., had opposed the deal, U.S. officials previously told CBS News. Duffy said that a "creditor issue" ultimately prevented a rescue plan.

"In March 2026, we reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business," Spirit CEO Dave Davis said in Saturday's statement. "However, the sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the Company."

Rising prices left "no choice," airline says

The Florida-based airline, which has filed twice for bankruptcy since 2024, recently faced surging costs injet fueldue tothe Iran war.

The "recent material increase in oil prices" brought on by the Iran war and "other pressures on the business have significantly impacted Spirit's financial outlook," the airline said in its statement. "With no additional funding available to the Company, Spirit had no choice but to begin this wind-down."

Duffy disputed this version of events, highlighting Spirit's bankruptcy filings.

"Spirit was in dire straits long before the war with Iran," Duffy said, adding that the airline's low-cost model "wasn't working."

The Trump administration's proposed bailout would have given the U.S. government a90% stake in the airline. Spirit's cash reserves had dwindled in recent days as talks with the government broke down, according to multiple sources familiar with the discussions. Duffy said President Trump "was like a dog on a bone trying to figure out a way to keep Spirit afloat," but that "in the end, a deal couldn't be reached."

The airline industry faces higher costs due to rising energy prices, prompting carriers to raise fares and cut unprofitable routes. A new Deutsche Bank forecast predicts U.S. passenger airlines' annual fuel bill increasing $24 billion, relative to a forecast made before the start of the Iran war. While the bank believes airlines will be able to generate $14 billion more in revenue to offset those costs, they predict airlines will earn $8.4 billion less than previously expected.

By the time of Spirit's first bankruptcy filing in November 2024, the company had lost more than $2.5 billion since the start of 2020. In 2025, Spirit cut almost 4,000 jobs and 200 underperforming routes, ending the year with about 7,500 employees, including 2,000 pilots and 3,000 flight attendants, according to its latestannual report.

Spirit again filed for bankruptcy in August 2025 and disclosed in a regulatory filing that it had "substantial doubt" about its ability to continue operating.

"No frills" flying

Liquidating Spirit will bring an end to an airline known for its bright yellow planes and rock-bottom fares. The company's roots go back to 1983, when the airline wasspun offfrom a trucking company. Initially called Charter One, the airline rebranded in 1992 as Spirit Airlines and added more planes and routes. The company shifted to a "no frills" approach to travel in 2007, according to its union.

Trump administration officials were told that Spirit would wind down operations within 24 hours, CBS News learned Friday from people familiar with the matter. They confirmed that the White House would not make a last-ditch effort to save the airline.

When President Trump was asked about a bailout for Spirit Airlines on Friday, he said, "Well, I guess we're looking at it. If we can do it, we'll do it, but only if it's a good deal."

Davis in his statement thanked the Trump administration and Commerce Secretary Howard Lutnick for "their extraordinary efforts to try to preserve jobs and service across the country."

Spirit flew to more than 40 cities in the U.S., with a main hub at Fort Lauderdale-Hollywood International Airport in Florida, and had international routes to the Caribbean and Central and South America.

Industry reaction

Reactions to Spirit's announcement came fast on Saturday. United Airlineslaunched a webpageproviding capped fares to Spirit customers. Southwest Airlines, JetBlue and Delta Airlines also announced reduced fares for affected Spirit travelers, according to the Department of Transportation.

To alleviate concerns about higher prices, some airlines will continue to offer reduced fares on former high-volume Spirit routes for all passengers, the department said.

"This is the airline industry stepping up and trying to provide relief as Spirit is going to go through this liquidation," Duffy said.

American Airlines, which serves 70 of the 72 airports Spirit flew from, said it was "reviewing opportunities to add additional capacity," including larger aircraft and adding flights on popular routes. The airline also said it was working to provide transportation for Spirit employees who had been displaced while working.

American Airlines said it was preparing to launch a jobs page specifically for Spirit staff members. United Airlines will launch a similar effort, the Department of Transportation said.

byAdministrator

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May 02, 2026

Spirit Airlines shutting down after failed effort at government rescue deal

Traveler arrives for Spirit Airlines flight, learns the company has shut down 02:57 Spirit Airlines announced early Saturday morn...

Bayesian superyacht sinking ‘not caused by storm’, says preliminary report

Aninvestigationhas found that the sinking of a Bayesiansuperyachtoff the coast ofSicily, wasnot caused by a storm as originally suspected, according to reports.

The 56-metre (184ft)Bayesian sank off the coastof theItalianisland on 19 August, 2024, killing seven people including Britishbillionaireand tech entrepreneur Mike Lynch and his 18-year-old daughter.

Italian prosecutors have now found that a storm was not to blame for the incident, according to findings shared with Sky News.

The weather on the day of the incident amounted to “little more than a squall, a sudden increase in wind speed that precedes thunderstorms and downpours,” which should have been manageable for the crew of the ship.

Preliminary findings suggest thatthe yacht is thought to have sunkdue to improper actions on the part of the crew of the boat and their underestimation of the weather with certain safety devices not being activated properly.

Tech tycoon Mike Lynch's superyacht the Bayesian is moved after being lifted to the surface near the fishing town of Porticello, Sicily in June 2025. (PA)

The investigation is also exploring the possibility of alleged crimes including negligent shipwreck and multiple counts of manslaughter for the yacht’s captain and two of its crew members.

The yacht’s manufacturers,Italian prosecutors, British marine investigators and survivorshave all made different claimsabout why the boat sank so suddenly.

Last May, an interim report into the sinking, released by the Marine Accident Investigation Branch (MAIB), showed wind speeds of 63.4 knots (73.0mph) on the yacht’s beam were sufficient to tip it over.

It was thought that the extreme winds were enough to topple the boat causing its passengers to be thrown into the sea.

The report suggested the structure may have compromised the boat’s stability in “motoring mode,” vulnerabilities that were not included in theyacht’s stability manual.

The MAIB report also challenged claims made by yacht builder The Italian Sea Group, finding that the Bayesian would capsize at a 70.6-degree heel, contrary to the builder’s assertion it could recover from 73 degrees.

Giovanni Costantino, the Chief of TISG, has described the yacht as “unsinkable” and claimed the crew must have left doors or hatches open, allowing water in.

The Bayesian was recovered from the sea ten months after its sinking in a multi-million pound operation.

At the time of its sinking, 22 people were on board. A coastguard official in Palermo said at the time thatbad weather had been expectedbut not of the magnitude witnessed, with winds of up to 90mph recorded on the day.

Subsequent investigations identified that the boat was hit by a mesocyclone, which is a type of powerful rotating thunderstorm that can produce tornadoes or extreme wind bursts.

Mr Lynch’s wife, Angela Bacares, was also on board the vessel and managed to escape. She told doctors that at 4am, the boat had tilted and she and her husband were woken up. Other victims included the yacht’s chef Recaldo Thomas and Morgan Stanley International chairman Jonathan Bloomer and his wife Judy Bloomer.

byAdministrator

in

May 01, 2026

Bayesian superyacht sinking ‘not caused by storm’, says preliminary report

Aninvestigationhas found that the sinking of a Bayesiansuperyachtoff the coast ofSicily, wasnot caused by a storm as originally suspect...

How Ana Navarro is working around getting bleeped on 'The View'

NEW YORK –Ana Navarrois ready to tape her new podcast anytime, anywhere.

TheCNNcontributor andABC "The View"cohost, 54, launched"Bleep! with Ana Navarro"earlier this year. While on Easter break in Costa Rica on April 9,First Lady Melania Trumpissued a statement at the White House in which she deniedhaving any involvementwith convicted sex offender Jeffrey Epstein.

Navarro, armed with mobile recording equipment, hopped into action. And while the timing of the Trump's press conference befuddled some, Navarro believes that there was clearly a plan in place.

"She obviously didn't write that stuff herself, right?" she tells USA TODAY. "It was full of legalese. So yes, I think she got advice. I think she got help. But because of that, I've now done a couple of breaking news episodes of the podcast from a portable thing I have."

When Ana Navarro stopped by USA TODAY's New York studio, she brought along a very special guest: her pet dog Cha-Cha.

Navarro, anoutspoken criticof the Trump administration, teamed up with iHeartMedia and Hyphenate Media Group for her new podcast. Hyphenate was launched by actressEva Longoriaand media executive Cris Abrego. Longoria also serves as an executive producer of Navarro's podcast.

"There are not that many Latino voices breaking down news," Navarro says about why she continues to lean in to these news cycles. "One of the things that most touches me is anytime I'm in the supermarket or I'm at the airport and some young Latina comes up to me and tells me how much it means for them to have somebody like me speaking up on behalf of our community.

"It's like a privilege and a duty."

'The View' inspired Ana Navarro's new podcast

The title of Navarro's podcast is a playful jab at her other her day job.

"The problem is that I get bleeped at'The View,'"she explains. "Sometimes I try to say things in Spanish. So now (ABC is) to the point where if I say 'queso,' they will bleep me out because they don't know what I'm saying and they're nervous."

She will not be censored on her own show.

Navarro's goal with the podcast is to both interview interesting subjects and break down news items without the typical restrictions of cable or broadcast TV, where a cohost or panelist may only get a fraction of a 7 minute segment to speak.

But she still enjoys her work on TV, despite the occasionally "bleep" and her commute between New York and Miami. Navarro believes authenticity is the key to any successful show and is one of the reason why "The View" has lasted on ABC for almost 29 years.

"It's women from different backgrounds, different generations, different races, ethnicities, different takes on life, giving their opinions," she explains. Cohosts on the view range from age 36 (former White House strategic communications directorAlyssa Farah Griffin) to 83 (actress-comedianJoy Behar).

Navarro also credits the team behind the cameras, whom she calls "an entire family." She says some have worked there since the show's launch with Barbara Walters in 1997. "They run like a fine tuned Swiss watch and they keep the shows going."

Bad Bunny and Lady Gaga perform a salsa-inspired "Die with a Smile" during his Super Bowl halftime show Feb. 8 in Santa Clara, California.