Trump administration officials have blamed former President Joe Biden’s administration for the collapse of Spirit Airlines, which announced Saturday that it was winding down operations after failing to emerge from bankruptcy. All flights have been canceled, leaving thousands of travelers stranded and approximately 17,000 employees without jobs.
Failed Merger Blamed
While multiple factors contributed to the budget carrier’s demise, Trump officials have focused on one key event: the blocked 2022 Spirit-JetBlue merger. JetBlue had planned to acquire Spirit Airlines for $3.8 billion in 2024, but Biden’s Department of Justice intervened over antitrust concerns and prevented the deal.
Transportation Secretary Sean Duffy told Fox News on Monday that his predecessor, Pete Buttigieg, and Biden had said at the time, “We want competition. We’re not going to allow this merger to happen. And because of that, right after, Spirit filed for bankruptcy.”
“They were bleeding money. They were bleeding market share,” Duffy added. “The merger would have made JetBlue stronger. You would have had one stronger airline as opposed to one airline going out of business. And so the story was written years ago.”
When JetBlue abandoned the merger in 2024, the Biden administration celebrated it as a victory for consumers. Then-Attorney General Merrick Garland stated, “The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices. We will continue to vigorously enforce the nation’s antitrust laws.”
Treasury Secretary Scott Bessent also pointed fingers at the Biden administration during a Fox News interview Sunday, arguing that the merger would have given Spirit Airlines “much more resiliency.”
Spirit Cites Fuel Costs
However, Spirit Airlines itself did not blame the failed merger. Instead, CEO Dave Davis cited a surge in jet fuel prices resulting from the Iran war, which President Donald Trump launched with Israel in late February. “In March 2026, we reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business,” Davis said in a statement Saturday. “However, the sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the Company.”
Spirit Airlines declined to comment on the role of the failed merger. Duffy acknowledged fuel price increases but insisted, “This story was not written because of the Iran war.”
Political Backlash
Pete Buttigieg responded sharply to Duffy’s remarks on X, writing, “This is happening on Trump's watch because he doubled jet fuel prices by taking our country to war, which drove Spirit out of business. Obviously.”
The average cost of U.S. jet fuel in major cities rose from about $2.50 per gallon before the war to around $4.13 per gallon as of last Thursday, according to Argus Media’s U.S. Jet Fuel Index.
Putting blame aside, Spirit’s collapse has had real-world consequences. “This is tremendously disappointing and not the outcome any of us wanted,” Davis said of the closure.
