Spirit Airlines’ Collapse and Accusations from Transportation Secretary
Transportation Secretary Sean Duffy has laid blame on his predecessor for the downturn of Spirit Airlines, coinciding with the Biden administration’s decision to end a $3.8 billion merger plan with JetBlue.
Duffy stated, “Spirit attempted to merge with JetBlue, but that deal was halted by the administration and the Department of Justice,” during an appearance on ABC’s “This Week.” He noted that Spirit filed for bankruptcy shortly thereafter.
“This plan has been in development for a while, and we’re proud that America’s airlines are stepping up to assist Spirit’s passengers and get them home,” he added.
The ultra-low-cost airline ceased operations after 34 years, resulting in approximately 17,000 job losses. Previously, President Trump had contemplated a $500 million bailout for the airline, a proposal that ultimately did not succeed.
In 2024, a court supported the Biden administration’s Justice Department in its opposition to the merger between Spirit Airlines and JetBlue.
Spirit had been struggling financially for several years, leading to its bankruptcy filing in 2024 after the merger was blocked.
Duffy has often criticized Pete Buttigieg, the likely 2028 Democratic presidential nominee, regarding his tenure as transportation secretary. He recently refuted claims that escalating oil prices due to the Iran conflict played a role in Spirit Airlines’ financial troubles.
“Spirit was already in serious trouble long before the war with Iran began,” he asserted during a press conference. “They had multiple bankruptcy filings, as their business model simply wasn’t sustainable.” He emphasized that the war was not the cause of Spirit’s issues and that restoring financial health was not feasible.
The closure of low-cost airlines has left many travelers in difficult situations. A spokesperson for Buttigieg was contacted for comments on Duffy’s accusations.
Duffy has previously pointed to over $80 billion in funding from Buttigieg’s Department of Transportation for Diversity, Equity, and Inclusion initiatives over a four-year period, underscoring his ongoing scrutiny of Buttigieg’s performance.
