SPIRIT AIRLINES

So long, Spirit Airlines. Should the government have saved you?

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Spirit Airlines has begun an orderly wind-down of operations, effective immediately. Every flight has been canceled and customer service is closed. The shutdown comes after the Trump administration’s $500 million rescue plan, which would have given the federal government an unprecedented 90 percent stake in the carrier, fell apart over the weekend. After blocking Spirit’s merger with JetBlue on antitrust grounds in 2024, the federal government spent the past several days weighing whether to essentially own the airline instead. In the end, it did neither, leaving summer ticket holders to fight their credit card companies for refunds.

Editorial cartoon showing a smiling passenger with glasses holding a rolling suitcase at an airline check-in counter, where the agent's computer screen displays the word "FREE," illustrating the proposal to make checked bags free as a condition of any Spirit Airlines government bailout

If Spirit Airlines gets a government bailout, bags should fly free

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Spirit Airlines has reportedly asked the Trump Administration for $360 million in emergency funding as jet fuel prices doubled following the Iran conflict. After 9/11, Congress provided $5 billion in grants and $10 billion in loan guarantees to airlines. The COVID-19 Payroll Support Program delivered over $50 billion with conditions including killed change fees, capped executive pay, and restricted buybacks. Any new bailout should require Spirit to include one free checked bag in every fare for a minimum of five years, making taxpayer support deliver tangible passenger benefits.

Editorial cartoon showing an IRS official in a dark suit holding a briefcase labeled "IRS" watching a commercial airplane taking off, depicting the tension between tax authorities and budget airlines seeking a tax holiday during the jet fuel crisis

Budget airlines want a tax holiday—but where’s yours?

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The Association of Value Airlines, representing Spirit, Frontier, and Allegiant, is asking Congress to suspend the 7.5 percent federal excise tax on domestic tickets and the $5.30 per-segment fee, citing the jet fuel crisis following the Iran war. On a typical $369 roundtrip fare, passengers already pay roughly $47 in mandatory taxes and fees, inflating ticket prices by about 13 percent. Without a requirement to pass savings to consumers, any tax holiday would function as a corporate subsidy rather than traveler relief.