Spirit Airlines prepares to shut down after government bailout collapses

Spirit Airlines is preparing to cease operations after a last-ditch effort to secure a $500 million federal rescue package fell apart, according to people familiar with the matter. The budget carrier, which reshaped American aviation over the past two decades by selling bare-bones tickets and charging fees for everything from printed boarding passes to seat selection, has been battered by high fuel costs, the Covid-19 pandemic, a failed merger and persistent engine defects. A spokeswoman for the airline said Friday it was “operating normally” but declined to comment further. The proposed bailout would have given the federal government a 90 percent stake in the Florida-based carrier in exchange for the loan — terms that drew opposition from several major bondholders, who said the arrangement would make the government the senior creditor and leave other investors worse off if the airline ultimately failed. Some Republican lawmakers also opposed a government rescue of Spirit. Transportation Secretary Sean Duffy expressed public skepticism about the rescue in recent weeks, questioning whether federal money could save the carrier long-term. President Trump had said he was open to a government takeover, describing Spirit as having “some good aircraft and good assets” and suggesting the government could