A new court filing has revealed just how desperate Spirit Airlines was for a bailout ahead of its abrupt shutdown earlier this month – as it operated at massive losses that even free jet fuel couldn’t fix.
The embattled budget carrier – known for its neon yellow Airbus fleet and ultra-low fares – ceased operations earlier this month after it failed to secure a $500 million bailout from the Trump administration, following its second bankruptcy filing in less than two years.
In its March operations report, which Spirit filed in bankruptcy court earlier this week, the upstart carrier revealed it was losing $1.61 for every $1 it took in – with an operating margin of -61.2%.
Like many other global airlines, Spirit had been struggling to contend with surging jet fuel prices as the Iran war fueled the worst-ever energy supply disruption in history – but its tight margins also seemingly helped doom the company, as travel site View from the Wing earlier reported.
Aircraft fuel costs for the Florida-based airline totaled $99,662,449, or about 24% of its total operating expenses. Even if the airline was given its fuel for free, it still would have suffered a loss, according to the report.
In a May 2 press release, Spirit CEO Dave Davis blamed the “sudden and sustained rise in fuel prices in recent weeks” for the company’s closure, saying it “has left us with no alternative but to pursue an orderly wind-down of the Company.”
A spokesperson for Spirit declined to comment, but pointed The Post to the company’s public business plan, which showed it was profitable in the fourth quarter of fiscal year 2026.
The nation’s eighth-largest airline also suffered a $257,137,506 reorganization item, which hit its net income, according to the March operations report.
As of March 31, the 34-year-old carrier was down to just $117,842,274 in unrestricted cash and cash equivalents.
President Trump floated the idea of bailing out the airline, which employed more than 17,000 staffers and operated hundreds of daily flights, after its second bankruptcy filing.
But the deal was reportedly facing an uphill battle, as some government officials fought over how to fund the bailout – and whether they should back it all – and several Spirit bondholders opposed the help altogether.
The White House blamed the Biden administration for contributing to Spirit’s eventual demise, after it sued to stop a planned merger between Spirit and JetBlue in 2024.
In 2022, lefty lawmakers like Sen. Elizabeth Warren (D-Mass.) and Rep. Alexandria Ocasio-Cortez (D-NY) sent a letter to the Justice and Transportation departments blasting the proposed $6.6 billion merger over antitrust concerns.
Many other airlines have responded to higher fuel costs by cutting down on long-haul routes, especially as they are forced to re-route some flights around war zones – meaning more fuel needs to be used.
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