Spirit Airlines Shuts Down After Rescue Talks Collapse, Canceling All Flights

MIAMI — Spirit Airlines said Saturday it has begun an orderly wind-down of its operations, effective immediately, canceling all flights and ending more than three decades of service after talks over a government rescue collapsed.

“All Spirit flights have been cancelled, and Spirit Guests should not go to the airport,” the Florida-based budget carrier said in a statement posted early Saturday. The company said its customer service operation was no longer available.

Rescue Effort Fails

Spirit had been in discussions with the Trump administration about a rescue package of about $500 million that could have kept it flying, according to the BBC. Those talks broke down.

Chief Executive Dave Davis said the airline had reached an agreement with bondholders in March on a restructuring plan that would have allowed it to emerge as an ongoing business. “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,” he said.

Jet fuel prices surged after the U.S. and Israel launched military operations against Iran in late February, disrupting oil shipments from the Middle East.

Administration Disputes Account

Transportation Secretary Sean Duffy rejected the suggestion that the war caused the airline’s collapse. Speaking at Newark Liberty International Airport, Duffy said Spirit “was in dire straits long before the war with Iran,” citing its multiple bankruptcy filings. “Their model wasn’t working,” he said. “The war was not the impetus.”

Spirit had been working through its second bankruptcy in recent years. A planned merger with JetBlue Airways was blocked by a federal judge in 2024 on antitrust grounds.

What Passengers Should Know

Spirit said it would automatically refund tickets purchased directly from the airline with a credit or debit card to the original form of payment. A bankruptcy court will determine how to compensate customers who paid with vouchers, credits or loyalty points. Travelers who booked through travel agents were advised to contact their agents. The airline said it could not reimburse emergency hotel stays or replacement flights.

Many travelers learned of the shutdown only after arriving at airports with luggage on Saturday morning. Other carriers have in past airline failures offered discounted “rescue fares” to stranded passengers, and consumer advocates urged affected travelers to check with competing airlines.

End of an Era for Ultra-Low-Cost Flying

Spirit helped pioneer the ultra-low-cost model in the United States, offering rock-bottom base fares while charging separately for carry-on bags, seat assignments and other extras. The approach forced larger rivals to introduce basic-economy fares to compete.

The shutdown leaves thousands of employees without jobs and removes a significant source of low-fare capacity from the markets Spirit served, including its home base in South Florida.