Spirit Airlines Shut Operations Amid Rising Jet Fuel Cost Social Media Blames Democrat Elizabeth Warren: Here's Why

(MENAFN- Live Mint) American budget carrier Spirit Airlines is shutting down its operations, the company announced on Saturday (local time), as it reeled under the weight of surging fuel prices and a government bailout dangled by US President Donald Trump fell through.

All Spirit Airlines flights have been cancelled as the discount carrier shut its operations effective immediately. Passengers were advised not to go to the airport after the airline failed to secure a deal with the Trump administration for funding.

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As Spirit decided to shut down its operations, one particular lawmaker is now being blamed for the domestic carrier's shutdown-Elizabeth Warren. A Democratic Senator from Massachusetts (since 2013) and a prominent member of the Democratic Party, Warren is being blamed for Spirit's shutdown.

This came after she questioned the potential use of government money, after the US President, on April 23, said that he was considering having the administration purchase Spirit Airlines. Warren, in a post on X, wrote,“Donald Trump's war with Iran caused the sky-high fuel prices that finally did Spirit Airlines in.”

"What do the American people get out of this taxpayer bailout?" she added.

Warren was not alone in backlashing the US President's decision to acquire Spirit. Senator Ted Cruz, the Republican chair of the Senate Commerce Committee, called the prospect of a government bailout for the discount carrier a "terrible idea".

Despite Republicans backlashing the decision, social media users are apparently only targeting Warren and accusing her.

Reposting a 2022 tweet of Warren, where she criticised the merger of Fly Frontier with Spirit Airlines, a user on X wrote, "Are you happy now? Spirit Airlines just ceased operation."

Another user reposted her 2024 tweet, where Warren warned that JetBlue's merger with Spirit would lead to higher fares, wrote, "Thank you, Elizabeth Warren, for killing Spirit Airlines, a budget airline for low-income consumers."

Why did Spirit Airlines shut down?

The US government had considered providing Spirit with $500 million in exchange for rights to acquire up to 90 per cent of the airline after it emerged from bankruptcy. However, key creditors opposed the deal because it would have given the government priority over their claims if the airline failed again.

The airline, whose biggest hubs were in Fort Lauderdale and Orlando in Florida, as well as Las Vegas, has been struggling for years. However, its problems were compounded after jet fuel prices soared, prompted by the US and Israeli war on Iran, which is now in its third month. The conflict has largely impacted the Strait of Hormuz, a key passageway responsible for a fifth of the world's oil and gas supply.

Dave Davis, Spirit's chief executive officer, in a statement on Saturday, said, "Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure," and added, "This is tremendously disappointing and not the outcome any of us wanted."

Before the Iran war began in late February, Spirit Airlines had been expected to exit bankruptcy over the summer after reaching an agreement with creditors on a plan to trim billions of dollars in debt and reduce the cost of its fleet. Higher fuel costs instead put the carrier at risk of liquidation.

Also Read | Inside the White House deliberations over rescuing Spirit Airlines Transportation Secretary announces measures to support passengers

Transportation Secretary Sean Duffy said the government is rolling out steps to assist passengers and employees affected by the shutdown. He added that several airlines, including United Airlines Holdings Inc., Delta Air Lines Inc., Southwest Airlines Co., and JetBlue Airways Corp., have agreed to limit fares or offer lower prices for impacted Spirit customers.

Duffy said the administration has coordinated with airline partners to prevent passengers from being stranded, preserve connectivity for affected routes, keep ticket prices in check, and help Spirit employees find new job opportunities.

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