Affordable carrier Spirit Airlines, which went bankrupt in 2025 and had been negotiating a $500 million bailout plan with the federal government, is reportedly staring at a shutdown after the deal fell through. The Wall Street Journal reported the news Friday citing sources
WSJ claims that Spirit has failed to bring some of the bondholders and the US government on the same page over the bailout plan for Spirit Airlines. It cites multiple anonymous sources familiar with the bailout discussions.
The shutdown is a big hit for discount flyers in several regional airports where Spirit is a significant carrier. Areas such as Detroit in Michigan will be significantly impacted as Spirit is the second largest airline operating from the Detroit airport after Delta.
Meanwhile, the report has sparked a collapse of Spirit Airlines’ share prices. From $1.40 to $0.4 – a 65% fall in just an hour, as of 12:30pm ET. While share prices of other carriers surged. It has sparked a significant interest on the ownership structure of the airlines. In this article, we will take a look at that.
Who Owns Spirit Airlines?
Spirit Airlines is a majority publicly traded company where more than 70% shares are held by public companies and retain investors. Due to the retail and public investors holding majority of the shares, they started offloading Spirit Airlines shares just as the WSJ report dropped.
Also read: Spirit Airlines stock update: Why is the FLYYQ share crashing today? Explaining the shutdown
Among the institutional investors who have significant assets deployed in Spirit Airlines are Vanguard Group, Inc., with approximately 9.52% holdings, and BlackRock, Inc., which holds about 7.69% shares. Meanwhile, 20.43% held by mutual funds and ETFs.
Dave Davis was appointed as President and CEO of Spirit Airlines in 2025 and continues to lead the company till date.
When Will Spirit Airlines Cease Operations?
Spirit Airlines has not officially released a statement on the bankruptcy and possible shutdown. WSJ reports that the carrier is “preparing to cease operations” but it did not specify a date when the carrier will go off air.
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The report about the failed deal with the US government comes amid a report by Bloomberg last week, which stated that some of the lenders already in business with them, such as the Citadel group, were unable to agree on the terms of the $500 million proposed bailout.
The talks between the government and Spirit Airlines started when President Donald Trump expressed interest in the government acquiring the airline, but at the “correct valuation.”
However, the US government had reportedly asked for 90% of total equity in exchange for the $500 million bailout, which did not sit well with other lenders.