Aircraft carrier collapsed after 'running out of runway'

Spirit Airlines struggled for years, hit by larger, cash-rich airlines that copied its business model, as well as failed mergers, higher costs and, most recently, a rise in jet fuel prices due to the war in Iran. Then he faced the most implacable enemy: time.

“We just ran out of clue,” CEO Dave Davis said in an interview with CNBC on Monday.

Spirit had hoped to emerge from bankruptcy, its second in less than a year, by mid-2026. Four days before the United States and Israel attacked Iran, a conflict that has sent fuel prices soaring, Davis said he and his team were optimistic that the exit strategy could still work. But that depended on fuel prices moderating in April.

They didn't do it.

“In late March and early April, it became clear that it was going to be difficult for us to get ahead,” Davis said, noting that crude oil prices were above $100 a barrel.

To try to save the company from collapse, Davis and others within Spirit spoke to the Trump administration about a bailout.

“We connected with several people in the government, including [Commerce] Secretary [Howard] Lutnick, through some contacts,” he said. “These guys… particularly Commerce, are very willing to help.”

The Trump administration had been working on an offer for a $500 million loan to keep the airline afloat in a plan that could have given the U.S. government a stake of up to 90% in the airline. The bondholders did not agree and submitted a counterproposal.

“Our bondholders also worked very hard to try to get something done,” Davis said.

The two sides were far apart on the terms of the deal, and on Thursday it became clear that it wasn't going to work.

“I think we just ran out of time,” he said.

Spirit said about 17,000 people, both direct and indirect workers of the airline, lost their jobs in the airline's collapse. Other airlines, smelling blood, had been circling for nearly a year, if not more, and within hours of the airline's collapse were scrambling to fly ticketed Spirit customers and extend their schedules in the absence left by Spirit's yellow planes.

Spirit hired veteran airline executive Davis, who was most recently CFO of country of the sunin April 2025, about a month after the company quickly emerged from its first bankruptcy. Critics said he avoided major changes in that first bankruptcy, such as shedding more assets to reduce costs.

Last August, the airline filed for Chapter 11 bankruptcy protection again, facing many of the same problems, although it cut flights, got rid of some of its Airbus planes and furloughed crew members to save money.

Davis previously worked at Northwest Airlines, which was combined with Delta Airlines in 2008, and also worked at US Airways, which merged with american airlines in 2013. Together with united airlines and Southwest AirlinesThe four airlines control about 80% of US capacity, after a major wave of consolidation.

More consolidation is likely and “what the lower end of the industry needs,” Davis predicted. He said that if Spirit's planned acquisition by JetBlue Airways was not blocked by a judge two years ago: “I think we would not be in the situation we are in now.”

Low-fare airlines were for a time a headache for large traditional airlines as they entered markets and offered eye-catching fares.

“There was no better example of that than the Spirit,” Davis said.

But then big airlines began copying part of the economy model, offering basic economy tickets and other additional fares. That hurt carriers like Spirit, which was profitable in the 2010s but had not turned a profit since 2019.

“Everyone saw that the low-cost airlines were taking a huge cut,” he said. “The shoe was completely on the other foot then, than it is today.”

He said another benefit the biggest airlines have is their huge credit card programs, in which they earn money from banks when customers swipe their credit cards, a business that gives them a bigger cash cushion to weather crises like high fuel prices.

Davis said that in Spirit's final days he was between Washington and the company's headquarters in Dania Beach, Florida, trying to reach a deal. Some staff, including pilots, didn't get the final word on the airline's latest flights until they approached landing late Friday or early Saturday.

“You cannot announce in advance that it is going to close,” he said. “What happens is suppliers stop working. Fuel suppliers stop fueling. Some crew members probably don't come. Then you have planes, people and passengers scattered all over the place in foreign countries. It needs to be done in a very orderly way, and it needs to be done all at once.”

Davis said he will stay at Spirit to oversee the airline's closure. Leased aircraft will return to the hands of the lessors. Those owned will be sold. The gates will be monitored by airports and likely used by other airlines. Another 130 employees will also remain in that job.

When asked if he would stay in the industry, Davis said, “I love airplanes and I like the industry, so I will probably never leave it, even though it is very difficult and exhausting for a person at times.”