Low-cost carrier Spirit has asked the U.S government for a financial rescue package, according to reports.

The embattled airline had been facing a convergence of several structural and near‑term shocks that have left it with too little cash, and too much exposure to costs. However a rescue plan agreed with creditors last year looked to be working, until the breakout of war in Iran in March quickly increased the price of kerosene.

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Spirit has assumed fuel prices at around $2.20–$2.30 per gallon. However, by mid‑April 2026, fuel prices had nearly doubled to about $4.20+ per gallon. Banks estimate this will add $360 million in unexpected annual costs, more than Spirit’s total unrestricted cash on hand.

This made the airline cash‑flow negative almost overnight, and has undermined creditor confidence in the reorganisation plan.

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Sprit has entered and exited Chapter 11 bankruptcy proceedings twice in the last two years. The first was in November 2024 and occurred in the wake of a takeover by JetBlue being blocked on anti-trust grounds. The second occurred in August 2025.

Neither Spirit or the DoT have made any public comment on the funding request, but if the carrier is unable to access any more funding, it is likely that creditors will opt for Chapter 7 liquidation proceedings in order that some value might be salvaged through the sale of assets.