Spirit Airlines ceases operations after failed federal bailout amid soaring jet fuel costs

Spirit Airlines announced it is shutting down operations after a federal bailout deal fell through, driven by soaring jet fuel prices. Budget airlines, including Spirit, sought $2.5 billion in federal aid to offset fuel costs, but negotiations failed. The Association of Value Airlines warned that losing low-cost carriers like Spirit could reduce competition and raise fares industry-wide. Rival budget airlines are offering promotions to assist stranded Spirit travelers as the industry faces pressure from high fuel expenses.