CBS News reports that Spirit Airlines has only enough available cash to sustain operations for a matter of days. Negotiations aimed at stabilizing the low cost carrier have stalled, with key stakeholders failing to align on a government backed rescue plan.

A counterproposal from Citadel was rejected by federal officials. Ares Management Corporation and Cyrus Capital, have also opposed the terms proposed by the government.

The airline has not turned a profit since before the pandemic and has filed two bankruptcies since 2024. Spirit’s ultra low cost model, highly sensitive to fuel and financing costs, has struggled in a higher rate environment, while persistent losses have limited flexibility. Making matters worse for the airline, fuel price shocks tied to the 2026 Iran conflict have increased operating costs.

Spirit’s presence has historically exerted downward pressure on fares in competitive markets; its exit could trigger measurable price increases and capacity tightening.

This is a breaking news story. Information will be updated as details become available.