Spirit Airlines Runs Out of Cash
Spirit Airlines is preparing to shut down. The airline has run out of cash.
Spirit shares fell by as much as 74% on Friday. A government bailout for the airline has fallen through.
A rescue attempt by the Trump administration appeared to stall. Spirit also could not make a deal with its creditors.
It could not secure funding to keep flying. The airline had struggled for years with money problems.
The war in Iran pushed up jet fuel costs. This added more financial pressure to the airline.
Klear Note — Spirit Airlines is a budget airline that charges low fares. Airlines need cash to pay for fuel, staff, and plane maintenance daily.
Key Terms 2
- bailout When a government gives money to save a failing company
- creditors People or companies that are owed money by Spirit Airlines