Southland travelers with tickets on Spirit Airlines may want to start exploring other options, with reports Friday the financially troubled carrier could cease operations in a matter of days after failing to secure a federal government bailout.
Spirit operates flights to and from Los Angeles International Airport, Hollywood Burbank Airport and John Wayne Airport in Santa Ana.
The low-cost airline has been in financial straits for years, still reeling from the earlier impacts of the COVID-19 pandemic and more recently from spiking gas prices and increased competition. A proposed merger with JetBlue Airways also fell through.
Spirit has twice filed for bankruptcy protection, most recently last year. It announced a restructuring agreement in March, saying the company hoped to emerge from bankruptcy by early summer.
But the financial troubles persisted, and the airline has been engaged in negotiations aimed at securing a federal bailout reported to be around $500 million. The proposal was met with skepticism in some corners, given that it would essentially give the government majority ownership of the airline.
The Wall Street Journal and other media outlets reported Friday morning that the bailout talks had broken down, and the airline could be forced to cease operations within days.
Speaking to reporters at the White House Friday, President Donald Trump said the government had presented the airline with a “final proposal,” and suggested a deal is still possible.
“If we can do it, we’ll do it, but only if it’s a good deal,” Trump said of a possible bailout. “I said I’d like to save the jobs.”
Trump said about 14,000 jobs are on the line with the airline. He said an announcement about the airline would be forthcoming Friday or Saturday.
The airline has not commented on the reports, and it was operating as usual Friday morning.