Spirit Airlines is preparing to shut down after failing to secure the critical financial support from the government needed to keep operating.

The struggling budget airline had been negotiating with the Trump administration for a $500 million rescue package that would have provided cash in exchange for equity-like warrants, giving the government up to a 90 percent stake. However, the effort has stalled because Spirit has been unable to secure the necessary backing from bondholders and government stakeholders, people familiar with the matter told the Wall Street Journal Friday.

There were reportedly disagreements within the Trump administration over whether and how to fund the bailout, while not all Spirit bondholders were on board with the deal, either, the sources claimed.

A couple of weeks ago, when it was clear that Spirit Airlines’ future was in doubt, Donald Trump did what he too often does: He tried to avoid blame for a looming setback by shifting responsibility to one of his Democratic predecessors.....

Nevertheless, in the days that followed, Commerce Secretary Howard Lutnick led a Trump administration initiative to bail out Spirit Airlines, as part of a deal that would have led the federal government to take a significant ownership stake in the business. A variety of Republicans raised a new round of concerns about state-run capitalism, the private negotiations ultimately failed, and the carrier permanently closed its doors late last week.

One day later, Trump administration officials, led in large part by Transportation Secretary Sean Duffy, moved away from the president’s effort to blame Obama and instead tried to convince the public of a related claim: This was the Biden administration’s fault.

Sean Duffy on Spirit Airlines: "I think it's important to talk about why we are here today. Joe Biden and Pete Buttigieg ... "

— Aaron Rupar (@atrupar.com) 2026-05-02T16:23:59.743Z

On Sunday, Treasury Secretary Scott Bessent also toed the new party line.

BARTIROMO: Treasury was supposed to be doing a deal to save Spirit Airlines. Can you tell us what happened?

BESSENT: This is just more of the mess we inherited from the Biden administration

— Aaron Rupar (@atrupar.com) 2026-05-03T15:31:34.251Z

....There are, however, two foundational problems. The first, as The Atlantic’s James Surowiecki explained, “If JetBlue’s acquisition of Spirit had been approved, there’s a good chance JetBlue would now be headed into bankruptcy, too.”

The second is that the White House’s pitch is part of a clumsy attempt to answer the question of why exactly Spirit folded. At a press conference on Saturday, Duffy told reporters, “The war was not the impetus for Spirit.”

There’s ample evidence to the contrary. As The Associated Press reported, “Although Spirit had gone bankrupt twice before, the company said high oil prices, which have been rising because of the war with Iran, made it impossible to stay aloft.” NBC News added, “Spirit, which has struggled to maintain consistent profitability since the Covid-19 pandemic, had been looking to emerge from its second bankruptcy in less than a year. But those plans were derailed amid soaring jet fuel costs sparked by the outbreak of the war with Iran.”

If Republicans want to argue that Spirit was facing real challenges before the war with Iran, that’s a fair point. But while they scramble to convince the public that Joe Biden (or, according to some GOP voices, Democratic Sen. Elizabeth Warren of Massachusetts) was the main culprit, the fact remains that the war pushed fuel prices higher, and according to Spirit’s own executives, this proved to be the death blow for the company.