May 01, 2026
Thom Carroll/For PhillyVoice
Discount airline Spirit is reportedly preparing to shut down as bailout deals fell through. The company is one of three commercial carriers at the Atlantic City International Airport.
Spirit Airlines, one of three commercial carriers that operates out of the Atlantic City International Airport, is reportedly set to cease operations.
As the company moved through bankruptcy court, President Donald Trump said last month that the federal government might offer a loan or buy the airline. But on Friday, the Wall Street Journal reported that the company hasn't been able to finalize a deal with creditors or find funds to stay afloat. It now will being plans to liquidate its fleet and shut down, the outlet said.
The change could have a large impact on the Atlantic City airport, which only has year-round flights from Spirit, Allegiant Air and Breeze Airways. Allegiant flights were added in August 2025, and Breeze just launched service in January, making Spirit the only longtime carrier.
Atlantic City International Airport did not immediately return a request for comment on the news.
Spirit also has three to seven departures daily from the Philadelphia International Airport, according to a spokesperson for PHL. The airport said travelers should check directly with the airline for updates on upcoming flights. In total, PHL has about 355 takeoffs and landings each day.
Sprit, which is known for low ticket prices with options to add baggage or choose seats for an additional fee, has had a tumultuous few years as it attempted to improve its financial situation. A federal judge stopped fellow airline JetBlue from acquiring Spirit for $3.8 billion in 2024 due to antitrust issues, saying that it would limit competition among airlines. In November of that year, Spirit filed for bankruptcy, but continued operations.
The following August, Spirit filed for bankruptcy protection after accumulating $7.4 billion in debt, the Guardian reported. Since then, the company has struggled with high oil prices which have jumped 40% for jet, train and truck fuel since the breakout of the war with Iran, according to the outlet.
The Trump administration proposed offering a $500 million loan to Spirit or buying the airline and selling it for a profit should oil prices come down. Other low-end airlines including Frontier and Avelo also asked the Trump administration about a $2.5 billion bailout last week due to high oil prices. However, none of those deals appear to have come to fruition as of Friday.
