Spirit Airlines Collapses, Trump Rejects Latest Iran Proposal, Kentucky Derby History: AM Update 5/4

0:00To realize the future America needs, we understand what's needed from us. To face each threat head on. We've earned our place in the fight for our nation's future. We are Marines. We were made for this. Good morning, everyone. I'm Megyn Kelly. It's Monday, May 4th, 2026, and this is your AM Update. There was a significant effort by President Trump and the administration to make it happen. But in the end, a deal couldn't be reached. Spirit Airlines abruptly shutting down after years of financial troubles and a blocked merger by the Biden DOJ, canceling all flights and leaving passengers scrambling to get home.

0:43President Trump rejecting Iran's latest peace proposal while announcing the U.S. will begin guiding ships to safely make it through the Strait of Hormuz. I tweeted normal things like a normal person and people are desperate for authenticity. U.S. Senate candidate from Michigan, Mallory McMorrow, facing scrutiny over resurfaced social media posts critical of working class voters and questions surrounding her voting record. And a Kentucky Derby for the history books, the first female trainer to win the race, and jockey brothers battling to a stunning one-two finish. And what about that horse? All that and more coming up in just a moment on your AM Update.

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2:37Go to supersure.com, one super agency, one powerful platform, all of your policies in one place and somebody to help you understand them. Go to supersure.com slash Megan today. That's supersure.com slash Megan, paid for by Super Insurance Insurance Agency, LLC, a licensed insurance company. Spirit Airlines officially going out of business over the weekend after 34 years. The discount airline releasing a statement Saturday morning, quote, it is with great disappointment that Spirit Airlines has started winding down its global operations effective immediately. All flights have been canceled and customer service is no longer available.

3:19The statement indicating customers with outstanding tickets will be refunded. Thousands of passengers, as well as pilots and crew, left stranded as a result of the sudden closure. Transportation Secretary Sean Duffy announcing a coordinated effort among U.S. airlines to return passengers home at costs similar to their discount Spirit tickets. United, Delta, JetBlue, and Southwest are all capping ticket prices for Spirit customers with proof of ticket purchases on the now-defunct airline. In addition, American Delta Allegiant and Frontier will offer temporary discounts to all passengers' traveling routes overlapping with Spirit.

3:59Some airlines also offering the ability for Spirit's 17 ,000 employees to jump the line in applying for a new job. The collapse comes after years of financial hardship for the airline. In 2023, the Biden Department of Justice, backed by several states, suing to block a proposed merger between Spirit and JetBlue. a deal the airline had hoped would stabilize its finances. Then Attorney General Merrick Garland announcing the interference. Our complaint alleges that JetBlue's proposed$3.8 billion acquisition of Spirit violates Section 7 of the Clayton Act. We allege that if allowed to proceed, this merger will limit choices and drive up ticket prices for passengers across the country.

4:44And we further allege that the impact of this merger will be particularly harmful for travelers who rely on what are known as ultra-low-cost carriers in order to fly. Those include working and middle-class Americans who travel for personal as opposed to business reasons and who must pay their own way. By acquiring Spirit, JetBlue will eliminate the largest ultra-low-cost carrier in the United States. That's our job, basically said the Biden administration, blocking the merger and effectively signing Spirit's death warrant. Then-Secretary of Transportation Pete Buttigieg, in this political interview, fully backing the move.

5:25Our department, the Department of Transportation, has generally not gotten involved in these merger cases, but that's changing today. It is so important to make sure that passengers have choices, that they have access to low fares, that they have access to competition. And yet we've seen less and less and less of that competition over the years. We are taking a step that, again, is unusual in terms of recent years, but we think is the right thing to do, supporting the DOJ's lawsuit and independently using our own authorities, which are a little bit different from the DOJ, starting our own investigation and taking other actions.

6:05In early 2024, a federal judge blocking the merger, agreeing with the Biden DOJ that the $3.8 billion merger was anti-competitive. In March of that year, JetBlue formally abandoning plans to acquire Spirit. Senator Elizabeth Warren, Democrat of Massachusetts, posting to X at the time, quote, I've warned for months that a JetBlue-Spirit Airlines merger would have led to fewer flights and higher fares. This is a Biden win for flyers. Totally a huge boon for the consumer, assuming, of course, that Chief Lieselot had some plan up her sleeve to solve Spirit's$500 billion losses two years in a row by that point, which made a merger appear kind of necessary.

6:49Because without a plan, Democrats were sealing the airline's fate. Treasury Secretary Scott Bessent yesterday on Fox blaming the Biden administration for Spirit's collapse. This is just more of the mess we inherited from the Biden administration In September 2022, Elizabeth Warren, who loves to write letters, sent a letter to the Justice Department, to the Transport Department, saying that they should oppose the merger with Spirit Airlines. JetBlue wanted to buy them for$3.8 billion. It would have given them much more resiliency. and she and the Transportation Secretary Pete Buttigieg, who's probably the worst Transportation Secretary in history, when he came to the office, they also were against the merger.

7:38And if JetBlue had merged with Spirit, we would have all these jobs that were lost yesterday. We had 30 regional airports who have lost service. But the reason we were here was because the merger, the Biden administration opposed the merger. We shouldn't have been here in the first place. Spirit Airlines representatives in the statement announcing its closure, writing, quote, despite the company's efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit's financial outlook. With no additional funding available to the company, Spirit had no choice but to begin this wind down.

8:18Secretary Duffy speaking to reporters on Saturday, disputing claims that rising oil prices are to blame for the closure. Once the merger was denied in 2024, Spirit filed for bankruptcy immediately after the denial. And then last August, Spirit again filed for bankruptcy. So Spirit was in dire straits long before the war with Iran. Multiple times they had filed for bankruptcy. Their model wasn't working. They couldn't get to fiscal health. So this was not It is true, however, that the Iran war is causing airline costs to soar. Axios reporting just days ago that, quote, global jet fuel prices are skyrocketing and supply is dwindling due to the Iran war.

9:09Spirit Airlines has suffered, as have several other carriers in Europe, the Mideast, and domestically. American Airlines, for example, has announced that the soaring price of jet fuel will cost it another$4 billion this year, wiping out its forecast profits, reports The Guardian. In the days leading up to Spirit's collapse, the Trump administration considering a possible$500 million bailout for Spirit, Secretary Duffy saying, however, quote, there was a significant effort by President Trump in the administration to make it happen, but in the end, a deal could not be reached. President Trump on Sunday afternoon announcing the U.S.

9:47will begin guiding ships through the Strait of Hormuz amid the war with Iran. Mr. Trump writing on True Social, quote, countries from all over the world have asked the United States if we could help free up their ships, which are locked up in the Strait of Hormuz, on something which they have absolutely nothing to do with. The Post continuing, quote, we have told these countries that we will guide their ships safely out of these restricted waterways so that they can freely and ably get on with their business. The effort, dubbed Project Freedom, expected to begin Monday morning local time. It will instruct U.S.-flagged ships and others how to safely navigate passages of the strait, which has been closed by Iran, according to the Wall Street Journal.

10:29The outlet describing Project Freedom as a joint effort between the State Department and U.S. Central Command. The president warning any interference with this process will be dealt with, forcefully. Over the weekend, President Trump receiving a 14-point peace plan from the Iranians, that plan reportedly calling on the U.S. to withdraw from areas near the Iranian border, end the naval blockade of Iranian ports, and cease all hostilities, including Israel's campaign against Hezbollah in Lebanon. An Iranian foreign ministry spokesman telling state media this plan did not include nuclear negotiations.

11:05President Trump yesterday morning telling reporter Nathan and Guttman, correspondent for the Israeli Public Broadcasting Corporation based in D.C., the latest deal is not acceptable. However, discussions with Iran remain ongoing. Despite rejecting the latest proposal, President Trump characterizing the talks as, quote, very positive. At home, more than two months into this conflict, gas prices reaching new highs. AAA reporting the national average is at$4.45 now per gallon, a$1.28 increase from this time last year. It was$5.09 a gallon in our neighborhood this weekend for unleaded regular. With midterms just six months away, it's not only gas prices, but President Trump's poll numbers that are moving in the wrong direction.

11:51A new poll from The Washington Post, ABC, and Ipsos, finding that 66 % of Americans disapprove of how the president is handling this war. Mr. Trump's overall disapproval rating is also at a new high. 62 % of adults say they disapprove, compared to 37 % who say they approve. Among Republicans, who make up about 29 % of the electorate, President Trump holding steady with an 85 % approval rating, support among Republican leaning independents dropping to a new low, however, of 56%. His approval rating among all independents, 25%. Coming up, U.S. Senate candidate from Michigan, Democrat Mallory McMorrow, responding to resurfaced social media posts and some questions about her voting history, and a stunning Kentucky Derby finish, a victory for the record books.

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13:36You have nothing to lose. Their US customer service team is standing by to help you switch in as little as 10 minutes. Just dial pound 250 and say Megan Kelly to claim unlimited high-speed data for just$34.99. Again, dial pound 250 and say Megan Kelly to switch to America's wireless company, Pure Talk. Try it out. U.S. Senate Democrat primary candidate in Michigan, Mallory McMorrow, responding to resurfaced social media posts, making fun of the state she hopes to represent, and new questions now surfacing regarding her voting history. McMorrow, currently serving as Michigan's state Senate majority whip, is running in a competitive primary ahead of what's expected to be a closely watched general election as Democrats target key seats in their bid to take control of the U.S.

14:29Senate. CNN reporting last week that McMorrow, who moved to Michigan from California in 2014, deleted about 6 ,000 old tweets, some of which mock rural Midwesterners and lament leaving California. Others admit to McMorrow still voting in California elections even after she moved to Michigan. The account wiped following a New York Post report last year on McMorrow's tweets dating back to the 2016 election. In one example, McMorrow affirming a post from someone else, suggesting that it's not the elites, but white working-class voters who are out of touch with the rest of the country and who need to reach outside of their comfort zone.

15:11McMorrow also adding to the thread, empathy should go both ways, but Trump's base fears what they've never seen. It's the Trump base that fears the coastal elites, not the other way around, in McMurray's view. CNN reporting the now-deleted posts containing, quote, a range of progressive views, from contemplating a future without cars, to supporting the Black Lives Matter movement, to comparing President Donald Trump and his supporters to Nazis. In the wake of Supreme Court Justice Antonin Scalia's 2016 death, McMurray posting, quote, thoughts after Scalia on life. Never be the type of person that makes people cheer when you're dead.

15:52One day prior to the official certification of President Trump's 2016 election victory, McMurray posting, quote, there are days like these that make me miss California even more. The 2016 election marking the first time a Republican had won Michigan since 1988. McMurray on CNN yesterday saying the deleted tweets are proof of just how authentic she is. I think the bigger liability is somebody who's been so concerned that one day they might run for office that everything about them is manufactured. And if that is what you're looking for, there are two other opponents in this race who fit that bill.

16:28I am not somebody who wanted to be in office or wanted to be in Congress when I was in diapers. I started my career as a car designer, and then I worked in a very different career and wasn't thinking about it. I tweeted normal things like a normal person, and people are desperate for authenticity. So that is what we need in November. CNN also reporting on possible discrepancies in McMorrow's voting record, noting that despite writing in her 2025 autobiography that she, relocated permanently to Michigan in 2014, she continued to describe herself on social media as a California resident as late as July 2016.

17:09McMurro's posts containing repeated references to voting in California's June 2016 Democratic primary, with public records showing she registered to vote in Michigan in August 2016. McMurro addressing these posts. Of course, you're required to vote in the state you're a resident of. So why would you be voting in California two years after moving to Michigan? So we decided to move to Michigan in 2014. I was still working in Southern California. My then boyfriend, now husband, was working in Michigan. Like a lot of millennials, moving takes time. It was a two year process to finally settle in Michigan.

17:48And I registered to vote in Michigan in August of 2016 and voted in the general election in November that year. But you wrote you relocated permanently in 2014. And you also posted in Instagram posts that you had moved out of California. And that was before the June 16th primary in that state. Should you have voted in the 2016 primary in California? We still had our place out in Southern California. And as I mentioned, we had multiple jobs. Moving is ugly. I wish we could have just upped and moved in one fell swoop. But that's not the case, just like it is for a lot of people. CNN finding a series of posts from 2024 in which McMorrow admonishes an ex-user who says he is registered in Michigan despite living in Los Angeles for work.

18:32McMorrow writing, quote, So you moved for work and live in California but are registered somewhere you no longer live? That's illegal. Early voting begins July 6, the primary election set for August 4. The RealClearPolitics polling average showing McMorrow in second right now with 20.7 points, slightly trailing Abdul El-Sayed, who's averaging 23 points. The winner likely to face former GOP Congressman Mike Rogers in the November general election. O'Salley is also gaining ground on the far outside as they come to the last 16th of a mile. Danan Bourbon in front, both selling a huge long shot. Renegade and Golden Tempo are closing two.

19:18Here's Golden Tempo! Golden Tempo and Cherie DeVoe make history in the Kentucky Derby over Renegade in a final time of 2.02.27 seconds. A thrilling finish at the Kentucky Derby on Saturday, Golden Tempo, with jockey Jose Ortiz storming from last place to win as a 23-1 long shot in a dramatic run at Churchill Downs. The victory marking a historic moment, trainer Cherie DeVoe becoming the first female trainer to win the Kentucky Derby and just the second to win any Triple Crown race. DeVoe on NBC reacting moments after the win. I don't even have any words right now. I just can't. I'm just so, so, so happy for Golden Tempo.

20:11Jose did a wonderful job, masterful job at getting him there. He's so far out of it and he has had so much faith in this horse. I want to say thank you to the team of St. Elias and Phipps Stable for giving me the opportunity to be here. I'm glad that I could be a representative of all women everywhere that we can do anything we set our minds to. Finishing second, Renegade, a horse ridden by jockey Irad Ortiz Jr. Irad is the brother of the winner Jose Ortiz. The one-two finish marking the first brother duo to place first and second in the derby. The two men sharing an emotional moment just past the finish line, grabbing each other by the arm after the race in a celebration they've dreamed of for more than a decade.

20:56This 2015 interview with the New York Racing Association. I know you guys have accomplished so much in a short period of time. If you had one major goal, one thing that you want to do more than anything else in this game, what would it be? For me, it's win the Derby and, you know, that's my dream and hopefully I can do it. Jose, how about you? Kentucky Derby, of course. It would be the greatest goal in my career. Well, I got a feeling we're going to see that happen for both of you. And maybe one day you guys will sweep the card. How about that? Thank you. Hopefully. Winner Jose Ortiz in a post-race press conference reflecting on competing against his brother.

21:35Well, obviously he wasn't. I felt like he wasn't a closer on Renegade, a little uncomfortable position. So I knew he was going to drop a little bit to the back. But I also knew he's a very nice horse. So I was expecting him to run a very good race, maybe win it. So it was one of my targets to follow, and I did. I wasn't expecting it, but I was like, I could see it happening, but I don't know if it was going to be second. It's good for him. He runs second. Like I said before, hopefully he get the opportunity to win one day, but it wasn't today. The win coming in Jose's 11th try at the Kentucky Derby, his first time taking home the trophy.

22:22Golden Tempo's team winning 3.1 million bucks in prize money, with runner-up Renegade earning$1 million. Back-to-back third-place finishes in this horse's two most recent races gave some pause on Golden Tempo, who was bred by Phipps Stables and St. Elias Stables, but no one's doubting him now. If you bet a hundred bucks on this horse, you went home with$2 ,300 in profit. Not bad. The Kentucky Derby marking the first leg of the Triple Crown of thoroughbred racing, followed by the Preakness Stakes on May 16th, then the Belmont Stakes set for June 6th. A Triple Crown sweep winning all races, the Derby, Preakness, and Belmont remaining one of the most difficult achievements in sports, accomplished by only 13 horses in history.

23:11We will have an in-depth report on this amazing story later today on the MK Show. And that'll do it for your AM update. I'm Megan Kelly. Join me back here for the MK Show, live on SiriusXM's The Megan Kelly Channel, 111 at New East, on youtube.com slash Megan Kelly, and on all podcast platforms.

23:34The wrongs we must right. The fights we must win. The future we must secure together for our nation. This is what's in front of us. This determines what's next for all of us. We are Marines. We were made for this.