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

The Megyn Kelly Show's AM Update on May 4, 2026, opens with the sudden collapse of Spirit Airlines after 34 years, citing financial struggles and the blocked $3.8 billion merger with JetBlue by the Biden DOJ. Despite claims from Trump administration officials that a bailout effort failed, the airline’s demise is attributed to long-standing insolvency, with multiple bankruptcy filings and a model that couldn’t sustain itself. The episode then shifts to foreign policy, covering President Trump’s rejection of Iran’s 14-point peace proposal and the launch of 'Project Freedom'—a U.S.-led initiative to guide ships through the Strait of Hormuz amid escalating tensions. Domestic issues follow, including rising gas prices (averaging $4.45 nationally), Trump’s declining approval ratings (62% disapproval), and scrutiny of Michigan Senate candidate Mallory McMorrow over resurfaced social media posts mocking rural voters and her voting history. The segment closes with a historic Kentucky Derby, where trainer Cherie DeVoe became the first woman to win the race, and jockeys Jose and Irad Ortiz achieved a rare brotherly 1-2 finish. The episode blends political, economic, and cultural headlines with sponsor integrations for SuperSure and Pure Talk.