Spirit Airlines, the ultra-low-cost U.S. carrier, said Saturday it has begun an orderly wind-down of operations effective immediately.
All flights were canceled and customer service was suspended. The airline said customers can request refunds through its automatic refund process.
In a statement, Spirit said it was “proud of the impact of our ultra-low-cost model on the industry over the last 34 years” and had hoped to continue serving customers for years to come.
The shutdown could affect roughly 17,000 jobs, the company said.
Spirit attributed the collapse in part to sharply higher fuel costs and “other pressures” on its business. The war in Iran pushed jet fuel prices above $4.50 per gallon by the end of April, more than double what the airline had forecast for 2026, the carrier said.
No government rescue was agreed. President Donald Trump had suggested a possible bailout and U.S. media reported a plan that would have used about $500 billion in taxpayer funds in exchange for a government stake in the airline. Mr. Trump said, “If we can help them, we will, but we have to come first,” and described a Friday proposal from his administration as a “final proposal,” but said no deal was reached.
Once one of the largest low-cost U.S. carriers, Spirit has been under strain since the COVID-19 pandemic. It filed for bankruptcy protection in 2024 and again in 2025 and has steadily cut capacity amid falling passenger traffic. In February the airline struck a debt-restructuring agreement with creditors that did not foresee the dramatic fuel-price spike tied to the Iran conflict.
Edited by: Louis Oelofse