US low-cost airlines face no bailout after Spirit collapse
Updated
Updated · Bloomberg · May 2
US low-cost airlines face no bailout after Spirit collapse
7 articles · Updated · Bloomberg · May 2
Transportation Secretary Sean Duffy said at Newark Liberty International Airport on Saturday that other budget carriers still have access to cash.
His comments signal the Trump administration does not currently see a need for federal financial support despite concerns over the sector after Spirit Aviation Holdings Inc.'s collapse.
The remarks address immediate fears of wider distress among low-cost airlines, while leaving open the possibility of future action if carriers' finances worsen.
A sudden fuel price spike grounded Spirit. Which budget airline will be the next to fall?
With Spirit Airlines gone, is the era of ultra-low-cost American air travel now over?