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(WASHINGTON) — President Donald Trump said an announcement was expected Friday on Spirit Airlines, amid a report that the airline was preparing to cease operations after a $500 million rescue deal fell apart.

The Wall Street Journal first reported that the airline is preparing to shut down operations.

When asked if the administration had decided against bailing out Spirit Airlines, Trump told reporters on Friday, “I guess we’re looking at it. If we could do it, we do it, but only if it’s a good deal.”

“No institution’s been able to do it,” he continued. “I said ‘I’d like to save the jobs,’ but we’ll have an announcement sometime today. We gave them, we gave them a final proposal.”

ABC News has reached out to the White House for additional comment.

A spokesperson for Spirit Airlines declined to comment on ongoing discussions as it related to the WSJ report.

“Spirit is operating as usual,” the spokesperson said in a statement. 

The Florida-based carrier is currently operating with over 40 flights in the air, according to FlightRadar24 data. 

Other airlines have responded to the news saying they will be ready to help stranded passengers in the event that Spirit shuts down. 

American Airlines told ABC News it will offer fare caps on main cabin tickets for routes they share with Spirit. 

Similarly, United Airlines said they’re “preparing to support Spirit customers in the event of a shut down.”

“We are ready to support customers who may be impacted if Spirit Airlines ceases operations, with a focus on helping people continue their travel plans with low-fare options,” Frontier Airlines posted Friday on X.

ABC News previously reported that Spirit could run out of the cash it needs to keep operating within days, not weeks, according to sources familiar with the matter. 

Spirit filed for bankruptcy for the second time last August — having previously filed for Chapter 11 bankruptcy protection in November 2024 — to restructure financially and “reduce its cost structure,” with hopes of emerging from Chapter 11 by the spring or summer of 2026.

The soaring price of jet fuel amid the ongoing war in Iran has had widespread impact on airlines and travel expert Katy Nastro, of airfare monitoring site Going, previously told ABC News that Spirit could be out of time to try and turn things around.

“It’s never a good sign to file bankruptcy to begin with, but a second within six months, even worse,” Nastro said. “Spirit suggested that they were going to be able to come out of bankruptcy this time by the spring. We’re in the spring now, we have higher jet fuel prices — this is a recipe for disaster for them.”

 

What travelers need to know about Spirit Airlines shutting down

Bradley Akubuiro, a crisis expert and former Boeing spokesperson, told ABC News that losing a budget airline like Spirit will raise the floor on airfares.

“Frontier, Allegiant, and Breeze are still flying, but Spirit was the biggest, and in the markets it dominated — Fort Lauderdale, Orlando, a lot of the Caribbean — there isn’t another carrier ready to backfill at the same price tomorrow,” he explained. “The pain isn’t immediate. It’s structural. A fare that used to be $89 is $140 six months from now, and most consumers won’t connect the two.”

When airlines liquidate, they immediately cease operations without notice, which means that passengers will be stranded and employees will not show up to work. 

There is generally no airline assistance when it comes to helping stranded passengers after an airline shuts down operations. 

For any ticketed passengers scheduled to fly Spirit or already in the middle of their trip, below are some tips from travel experts on how to navigate the situation.

Don’t immediately cancel your flight, Nastro advised, adding that travelers who cancel forfeit their right to a refund. And make sure to keep all records and receipts.

If you booked with a credit card, you can dispute the charge with your credit card company and likely get the money back.  

There is less protection if you booked with a debit card, but you can still contact your company to see if you can get reimbursed. 

If you have travel insurance, she reminded customers to read the fine print as not all of them cover this type of scenario. 

Per the Department of Transportation, customers could consider filing a proof of claim in the bankruptcy proceeding to try and get a partial refund, but the claim will be considered along with all the other creditors that the airline owes money to and you may only get a small portion of your money back.

If you’re stranded, check options with other airlines that might be able to offer relief flights, fare caps or emergency fares, like they would do after a big weather event.

This is a developing story, check back for updates.

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(NEW YORK) — The Federal Reserve held interest rates steady on Wednesday at its first meeting since the U.S.-Israeli war with Iran drove up gasoline prices and risked a wider bout of inflation.

The central bank’s move marked the second consecutive time it has opted to maintain interest rates at current levels since the outset of 2026. Before that, the Fed cut interest rates a quarter-point three straight times. The decision on Wednesday matched market expectations.

“The implications of developments in the Middle East for the U.S. economy are uncertain,” the Federal Open Market Committee (FOMC), a policymaking body at the Fed, said in a statement on Wednesday.

Elevated price increases have coincided with a slowdown of economic growth, threatening to intensify an economic double-whammy known as “stagflation,” which poses difficulty for the Fed.

If the Fed opts to lower borrowing costs, it could spur growth but risk higher inflation. On the other hand, the choice to raise interest rates may slow price increases but raises the likelihood of a cooldown in economic performance.

The benchmark rate stands at a level between 3.5% and 3.75%. That figure marks a significant drop from a recent peak attained in 2023, but borrowing costs remain well above a 0% rate established at the outset of the COVID-19 pandemic.

A lackluster jobs report last week showed the U.S. economy lost 92,000 jobs in February, which marked a reversal of fortunes for the labor market and erased most of the job gains recorded in 2026.

The unemployment rate ticked up from 4.3% in January to 4.4% in February, the BLS said. Unemployment remains low by historical standards.

A revised government report last week on gross domestic product (GDP) showed the economy grew at a sluggish annualized pace of 0.7% over the final three months of 2025.

Those economic headwinds helped set the conditions before the outbreak of war with Iran, which spiked oil prices and risked price increases for a host of diesel-fuel transported goods.

U.S. crude oil prices rose to about $97 per barrel on Wednesday, marking a surge of more than 50% since a month earlier.

Since the military conflict began, U.S. gas prices have gone up 86 cents to an average of $3.84 per gallon as of Wednesday, according to AAA.

The rate decision on Wednesday marked the first such move since a federal judge blocked Justice Department subpoenas to the Federal Reserve’s Board of Governors after determining the government “produced essentially zero evidence” to support a criminal investigation of Fed Chair Jerome Powell, according to an unsealed court opinion.

“A mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning,” U.S. District Judge James Boasberg said in his opinion on Friday.

Acting U.S. Attorney Jeanine Pirro blasted Boasberg as an “activist” judge and pledged to appeal his ruling.

ABC News’ Alexander Mallin, Allison Pecorin, and Jack Date contributed to this report.

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(LOS ANGELES) — A Chevron gas station in Los Angeles elicited headlines in recent weeks for charging an eye-popping $8.71 a gallon, becoming an emblem for the spike in fuel costs set off by the Iran war.

Sky-high gas prices nationwide owe primarily to a historic oil shock that followed Iran’s effective closure of the Strait of Hormuz. But a lesser-known contributor helps account for just how high prices have gotten, at least at some name-brand stations selling fuel from the likes of Chevron, Shell and ExxonMobil.

Branded stations, which make up almost half of gas stations nationwide, charge about 6 cents more per gallon on average than their unbranded counterparts, according to data from the Oil Price Information Service (OPIS), a Dow Jones company, for the week ending on May 2. That price gap marks little change from where it stood before the war, OPIS data showed.

In at least one state, the price disparity runs significantly higher. Gas at a Chevron station in California costs an average of 48 cents more per gallon than the price at an unbranded station, the California Energy Commission (CEC) found in 2024. After Chevron, the most expensive average gas prices in California were found at Shell, 76 and Arco-branded stations, the CEC said.

Some analysts said the higher price of branded gas is due to additional costs, such as proprietary additives in the fuel, as well as a producer’s marketing budget and the payment forked over by stations for guaranteed access to its gas – costs that are passed on to consumers.

Other analysts and a California state watchdog, however, have said that the price disparity may stem from the market dominance of a handful of companies, allowing them to drive up the retail price.

The scrutiny comes as some large oil companies like British Petroleum, Valero and Marathon Petroleum report soaring profits amid the Iran war, though Chevron and Exxon saw profits decline due in part to one-time paper losses stemming from financial hedges meant to protect them against a possible price drop.

The price of an average gallon of gas currently stands at $4.52, an increase of $1.54 per gallon since the war began on Feb. 28, AAA data showed. That amounts to a nearly 52% jump in about two-and-a-half months.

Patrick Penfield, a professor of supply chain practice at Syracuse University, said the recent surge in prices could prompt a reexamination of the costs baked into the price at the pump, including the added charge for branded gas.

“When you see such big price increases for gasoline, everything should be looked at,” Penfield said.

Chevron did not directly respond to an ABC News request for comment. However, Jim Stanley, director of media relations at the Western States Petroleum Association, a industry trade group, contacted ABC News at Chevron’s request.

Drivers choose branded gas stations as a matter of customer preference centered on issues like lighting, bathroom cleanliness or location, Stanley said.

“Any branded product – whether it’s medication or groceries or clothing – is going to generally cost more than a generic alternative,” he added.

Stanley further said roughly 95% of branded gas stations operate as franchises, meaning they enter into agreements with big-name companies but retain self-ownership.

“Branded gas stations can have these brand standards that they hold their franchisees to: a higher standard than an independently owned store,” Stanley added.

Kelly Davila, a spokesperson for Exxon, said the company doesn’t “own or operate our retail stations.”

Shell declined to respond to ABC News’ request for comment.

Phillips 66, the parent company of 76, did not respond to ABC News’ request for comment. Neither did Marathon Petroleum, the parent company of Arco.

Branded gas stations account for about 45% of stations nationwide, selling gas under the name of a major fuel company, OPIS data shows. Each of the brands touts a unique blend of additives that it says improves the gasoline and eases its effect on car engines. The extra ingredients go beyond the minimum standards mandated by federal and some state regulators, Denton Cinquegrana, chief oil analyst at Dow Jones Energy, told ABC News.

“At the end of the day, all gasoline has to meet a federal standard,” Cinquegrana said. “The branded gasoline goes above and beyond that minimum requirement.”

Higher prices charged by name-brand stations – a dynamic that stretches back decades – can be traced in part to spending on the development and production of the additives, Cinquegrana added: “They’re trying to recoup some of that investment.”

Some analysts, however, said it remains unclear whether the added ingredients deliver a meaningfully improved product.

“Regardless of each company’s claim, there is not sound evidence supporting the fact that additives do indeed improve the quality of gasoline, at least to the extent that the consumers perceive it to,” a study issued by the non-profit RAND corporation found in 2010.

The California Division of Petroleum Market Oversight (DPMO), a state watchdog agency, last year said it was “unable to independently verify claims that branded gasoline is superior to unbranded gasoline.”

When asked about studies disputing the value of additives, Stanley, of the Western States Petroleum Association, declined to comment.

The higher price of branded gas also owes to marketing budgets borne by the big-name companies as well as elevated costs paid by retailers as part of agreements with the brands that guarantee them priority access in the event of a supply shortage, the U.S. Government Accountability Office said in a study of the issue published in 2005.

“Gas stations pay more for a contract for branded gasoline because they have a guarantee of supply. And they have a major global brand backing them up,” Cinquegrana said.

Some analysts and a California watchdog disputed those explanations. Rather, they said, the higher prices may reflect market power enjoyed by the large firms, giving them leeway to raise prices without fear of competition.

“My own reading of the data is that the branded companies are able to take advantage of a lack of a competitive market and are acting almost like an oligopoly,” Paasha Mahdavi, a professor of energy governance and political economy at the University of California, Santa Barbara, told ABC News, using a term that describes an industry dominated by a small number of companies.

Mahdavi focused on the relatively large price gap in California between branded and unbranded gas, which has widened in recent years.

In 2019, branded gas from companies like ExxonMobil, Arco, Valero and Chevron cost an average of 20 cents more per gallon in California; within five years, that price disparity had climbed to 31 cents, according to a DPMO study issued last year. Over that same period, the profitability of oil refiners in California has increased, DPMO said.

The rise in refinery profitability may be traced to the “exercise of market power by gasoline suppliers,” DPMO added, saying 90% of in-state refining capacity is controlled by four companies. As a result, elevated wholesale prices could be passed along the supply chain, DPMO said.

The largest companies appear to have “pretty strong control of not only upstream assets like oil and gas, but also control of the gas stations that are preferred by consumers based on location,” Mahdavi said. “They’re able to charge a higher premium.”

Valero did not respond to ABC News’ request for comment.

Stanley, of the Western States Petroleum Association, said he is unsure why California features a larger gap in price between branded and unbranded gas than other states. One contributor, he said, could be the relatively low density of gas stations in the state.

“Competition brings down costs. When a retailer doesn’t see that same level of competition, you can see that reflected in higher prices.”

Stanley faulted environmental regulations in California for high overall gas prices.

“Branded or unbranded, gas in California is the most expensive in the country. That’s because of supply constraints that have been created by state policies.”

Mahdavi further said that the locations of branded gas stations may carry additional costs due to higher rents, accounting for some of the price gap.

The rise in prices during the Iran war offers an opportunity to revisit the factors that contribute to the price at the pump, according to Mahdavi.

“We can shine more light on what is driving these higher prices,” he said.

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