Spirit Airlines Files for Bankruptcy After Ceasing Operations, Citing Fuel Cost Increases

Spirit Airlines shut down with immediate effect on Saturday, impacting thousands of passengers who became stranded and nearly as many employees. The shutdown also affected employees working layover flights, leaving them stranded as well. Spirit Airlines carried over 50,000 passengers in its final flights on Friday, but transported all crew members to their home bases by Sunday night.

A bankruptcy hearing for Spirit Airlines occurred on Tuesday morning in a White Plains, New York, courtroom in front of Judge Sean H. Lane. Marshall Huebner, an attorney for Spirit Airlines, took the stand at the hearing.

U.S. and Israel's war with Iran, Huebner said. The fuel megaspike was projected to add hundreds of millions of dollars to the airline's liquidity needs for the year.

Negotiations broke down between Spirit Airlines and President Donald Trump's administration, according to Huebner. 'Thank you and sorry to the American public,' Huebner said at the hearing.

NBC News obtained a letter from Spirit Airlines shared with around 4,000 employees in Florida on Saturday. The letter laid off the 4,000 employees with immediate effect. 'This layoff will be permanent, and the Company's operations at the locations will permanently cease,' the letter stated.

The letter was signed by Vice President of Human Resources Suzanne Solon. The company regretted not giving employees more notice due to attempts to secure financial assistance from lenders and multiple other third parties, Solon wrote. 'We were not able to because the Company was actively seeking capital to avoid these layoffs and closures and notice would have precluded the Company from obtaining the capital needed,' Solon wrote.