Spirit Airlines reportedly negotiating with U.S. government for lifeline as amid collapse speculation

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Spirit Airlines plane seen in AZ amid troubles

Spirit Airline's yellow-colored planes were spotted in the West Valley, even as the airline ended operations to Phoenix Sky Harbor earlier this year. This comes amid speculation the airline could go under. FOX 10's Brian Webb reports.

Spirit Airlines is still facing financial turbulence, and there is a possibility of low-cost carrier going under soon without a lifeline from the U.S. Government.

Here's what to know about the beleaguered airline, and the strange connection Arizona has to the situation.

What's going on with Spirit Airlines?

The low-cost carrier that, according to the Associated Press, is known for its bright yellow planes and no-frills services has been dealing with financial problems in recent years.

By the numbers:

According to their 2019 filing with the U.S. Securities and Exchange Commission, Spirit had a net income of just over $335.2 million that year. As it turns out, figures show that 2019 was the last year Spirit reported a net income, because the company reported a $428.7 million loss for 2020, and losses in every year since then.

The airline attempted to merge with Frontier and JetBlue in 2022, but the deal with Frontier ultimately fell apart, while the deal with JetBlue was blocked by a federal judge in 2024.

Per Spirit's most recent SEC filing in 2024, the company lost over $1.2 billion.

Dig deeper:

In November 2024, Spirit filed for bankruptcy. AP's report on the bankruptcy states that by that time, Spirit had lost more than $2.5 billion.

AP report on Spirit's 2024 bankruptcy states that at the time, the company faced higher costs, especially for labor. In addition, the airline had to deal with competition from other U.S. airline companies that offered their version of low-price fares, and sagging demand for Spirit's kind of airfare, while the premium end of the air travel market surged at the same time.

The airline would emerge from bankruptcy protection in March 2025, only to file for bankruptcy again in August that same year.

In March 2026, the company announced it would "rightsize" its fleet to 76–80 planes by the third quarter of 2026, as part of a reorganization plan that was submitted to a U.S. bankruptcy court. The doubling of jet fuel costs in some markets amid the ongoing Iran war reportedly affected Spirit's plans to exit its second bankruptcy.

Does Spirit operate flights out of Phoenix?

Since January 8, 2026, Spirit has not had a presence in Phoenix, as the airline announced in November 2025 that they will discontinue all services at Phoenix Sky Harbor Airport and three other airports.

According to available data, Spirit had a presence at Sky Harbor since at least October 2013.

(Photo of planes here)

While Spirit no longer flies to the Phoenix area, the airline still has a presence of sorts in the Valley, as their yellow-colored planes can be seen sitting at Goodyear Airport. Unlike Sky Harbor, Goodyear Airport has no regularly-scheduled flights.

We reached out to Spirit Airlines, Sky Harbor Airport and the City of Goodyear on why the Spirit planes are parked at Goodyear Airport, but they have yet to respond.

What happens now for Spirit Airlines?

On April 21, President Donald Trump inferred during an interview that the federal government might help keep the airline afloat, while also calling for a buyer to step in and help.

What Trump Said:

"Spirit’s in trouble, and I’d love somebody to buy Spirit. It’s 14,000 jobs. And maybe the federal government should help that one out," President Trump said during an interview with media outlet CNBC.

Expert Perspective:

An expert we spoke with talked about what could happen if Spirit is liquidated.

"They're gonna be focused on their creditors, trying to get back as much money as they can," said Nick Ewin of The Points Guy. "The consumers, unfortunately, fall towards the bottom end of the priority chain in a liquidation event."

Ewin also talked about what could happen to airfare in that scenario.

"It typically does not vote well for the overall prices. It means less competition," Ewin said.

The other side:

Trump administration officials, meanwhile, are downplaying concerns of price increases.

"A small disruption, hopefully, for a short period of time, but in the long run, it becomes cheaper for Americans to travel," said Transportation Secretary Sean Duffy.

Meanwhile, a Trump administration spokesperson is blaming the Biden administration for blocking a merger between Spirit and JetBlue over concerns it would lead to higher airfares.

The Source: Information for this article was gathered by FOX 10's Brian Webb, as well as from Spirit Airlines, the Associated Press, and previous, relevant FOX 10 news reports on Spirit Airlines.

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