Airline Serving PA Airports On Brink Of Closure As Taxpayer Bailout Falters: Report

PENNSYLVANIA — The state's two largest airports will be impacted with the apparent impending shutdown of one of the nation's largest discount airlines.

Spirit Airlines, known for its low fares and distinctive banana-colored airplanes, is preparing to cease operations as early as Saturday, according to multiple reports.

The ailing budget airline had been hoping to finalize a $500 million lifeline from the government before running out of cash.

However, The Wall Street Journal reported on Friday that the discount carrier wasn't able to gain sufficient support between certain bond holders and the government to secure the funding to keep it in business.

The deal would have provided the airline with cash in exchange for warrants that could convert into a stake of up to 90 percent of the company.

In November 2024, Spirit filed for bankruptcy after an effort to sell the company to fellow discount carrier Jet Blue fell through. A second bankruptcy followed.

Spirit has been facing a major financial squeeze from the rapid increase in jet fuel prices spurred by the U.S. war with Iran, Bloomberg reported.

Its current bankruptcy restructuring plan was built on fuel costs averaging ‌about $2.24 per gallon in 2026 and $2.14 in 2027. But jet fuel prices are already double the level assumed in its projections — $4.24 a gallon in the middle of last month, according to Reuters.

Spirit flies in and out of Pittsburgh International and Philadelphia International airports.

But the Pennsylvania airport that might be the most harmed if Spirit suspends service is the Arnold Palmer Regional Airport in Latrobe, about 40 miles from Pittsburgh.

Since 2011, Spirit has served as the sole commercial carrier at the airport. Officials at the airport, which is undergoing a $22 million expansion of its terminal, have said they are in negotiations with other discount carriers.

Pittsburgh International Airport is served by several other low-cost and discount carriers, including Frontier Airlines, Allegiant Air, and Breeze Airlines.

Besides Spirit, Philadelphia International Airport's primary discount carrier is Frontier.

President Donald Trump on Friday said he's still weighing a taxpayer-funded takeover of the airline.

The president didn’t offer details about the proposal, but said he would have an announcement on the matter Friday or Saturday.

“We’re looking at it. If we could do it, we’ll do it. But only if it’s a good deal,” Trump said.

Trump said he would like to save jobs at the airline and his administration gave Spirit “a final proposal.”

“We’re looking at Spirit and if we can help them, we will. But we have to come first,” he said.