_WHAT’S HAPPENING_
Spirit Airlines abruptly ceased operations after a proposed $500 million federal bailout fell apart, stranding thousands of travelers and putting roughly 17,000 employees out of work. The ultra-low-cost carrier, which had already filed for bankruptcy twice since 2024, was unable to secure financing as bondholders balked at the rescue terms.
Since the collapse, debate has broken out in Washington and beyond over an essential question: who killed Spirit Airlines? Some point to rising fuel costs due to the war in Iran, as airlines across the board have been strained and are raising prices for consumers. Others point to action — or rather inaction — taken during the Biden administration, in which the Justice Department blocked Spirit from merging with JetBlue over anticompetitive concerns.
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