May 1, 2026
Kevin O'Leary has never been shy about letting failing businesses fail — and he thinks Spirit Airlines (OTCMKTS: FLYYQ) should be no different. The Shark Tank star and chairman of O'Leary Ventures called the Trump administration's reported $500 million rescue plan for the budget carrier a "really bad idea" in an appearance on NewsNation's Katie Pavlich Tonight on April 24 (1).
"All of these rescue bailout programs for failing companies — capitalism works because the losers die," O'Leary said. "You don't want to support bad management. You want to let them die. That's how the private system works (2)."
Advertisement
The comments come as Spirit Airlines faces a potential second bankruptcy (3) in roughly a year, with the federal government reportedly considering a loan of up to $500 million that could give it up to a 90% ownership stake in the airline (4).
With the summer travel season approaching, millions of Americans with Spirit bookings — or considering them — may be wondering: what does any of this mean for me?
Understanding Spirit Airlines' turbulent financial history
This isn't the first time Spirit has faced potential collapse. The airline first filed for bankruptcy in November 2024 and then again in August 2025 after the airline's merger with JetBlue (2) was blocked. Spirit had been on track to exit bankruptcy this summer, but this will be challenging with the Iran war driving up the cost of jet fuel.
The failure of Spirit Airlines could have a big impact on the public, experts say. As one of the few low-cost carriers in the U.S., the collapse of Spirit could drive prices up across the board.
"The alternatives won't be there," said Jan Brueckner, a retired economics professor who taught at the University of California, Irvine, told NPR (3). "So Spirit's troubles are not good for the traveling public, both because Spirit itself may disappear, and because the discipline it imposes on the other carriers will disappear as well."
President Trump told CNBC (5) he supports the rescue: "It's 14,000 jobs, and maybe the federal government should help that one out."
Advertisement
But the idea has also drawn concern from both sides of the aisle. Democratic Senator Elizabeth Warren pushed back on the potential deal, saying "Donald Trump's war with Iran caused the sky-high fuel prices that finally did Spirit Airlines in. What do the American people get out of this taxpayer bailout?" (6)
Transportation Secretary Sean Duffy told Reuters that he was wary of the move, saying "What we don't want to do is put good money after bad, and there's been a lot of money thrown at Spirit, and they haven't found their way into profitability." (7) Sen. Ted Cruz called the proposal "an absolutely TERRIBLE idea," in a post on X (8) adding that the government doesn't know how to run a budget airline.
As for O'Leary, his position fits his long-held philosophy. During the pandemic, he argued that failing airlines should go bankrupt rather than take federal aid (9). His view on Spirit is consistent: let the market decide.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — are you doing the same?
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
What this means if you've already booked with Spirit — or are planning to
For everyday consumers, the downfall or survival of Spirit is about much more than a government bailout — it's about what it means for their travel plans. Here are some important things to keep in mind:
- Book with a credit card: Using your credit card may offer protections like travel insurance or chargebacks. If the airline ceases operations or cancels your flight, this may give you more options to get some money back. Check the terms of your agreement to understand your specific benefits.
- Consider travel insurance: If you buy coverage for your trip, make sure it includes "cancel for any reason" (CFAR) coverage (10). This is generally the broadest coverage available and, while it may cost a bit more, it could be worth it.
- Choose refundable fares when possible: If you're on the fence about flying Spirit, consider paying a little more for a refundable fare. With Spirit's future uncertain, the flexibility may be worth the extra cost for now.
- Don't book Spirit for a trip you can't afford to lose: If you're traveling for an important reason, like a wedding or cruise departure, or if you have expensive non-refundable tours or events, it may be best to steer clear of Spirit until their future is a bit more certain.
For now, Spirit says it's operating as usual. But with summer travel just around the corner, it's worth having a back up plan if Spirit flights are part of your itinerary.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
YouTube (1); Fortune (2); NPR (3); CBS News (4); CNBC (5),(9); Reuters (6),(7); X (8); Allianz Travel Insurance (10)
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.
