For weeks, there’s been talk about Spirit Airlines potentially shutting down amid bankruptcy, with Donald Trump saying on CNBC in April that he’d “love somebody 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.”
That came after a Wall Street Journal report that the company was going to shut down. Amid all of this, a Spirit spokeswoman told the Times that “the airline was operating normally” while declining to comment on the reports.
Here’s what we know so far:
When Will Spirit Airlines Shut Down?
That’s unclear at the moment. This isn’t an official shutdown yet — there are just reports that the airline is preparing to shut down.
Why Is Spirit Airlines Potentially Shutting Down?
There are a number of reasons, 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 passengers stranded when one of their competitors goes out of business, but those aren’t always cheap or easy to come by.
Travel insurance also may not cover bankruptcy as a reason for a claim, so make sure you know what’s in your policy before relying on your insurance.
