Spirit Airlines Ceases Operations

Airlines said it had started an orderly wind-down of operations effective immediately after rescue talks with the Trump administration collapsed. The ultra-low-cost carrier canceled all flights and directed passengers not to go to the airport. The announcement came early Saturday morning via the company's website.

The carrier had been emerging from its second bankruptcy filing when fuel prices rose sharply. It had sought a $500 million bailout to continue operations. Discussions ended without an agreement.

Davis said a restructuring plan agreed with bondholders in March 2026 would have allowed the airline to continue, but rising fuel prices left no alternative. "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," Davis stated.

Transportation Secretary Sean Duffy disputed the emphasis on fuel costs. "Spirit was in dire straits long before the war with Iran," Duffy said at a news conference. "Their model wasn't working. The International Association of Machinists and Aerospace Workers union blamed corporate mismanagement and poor financial stewardship.

Passengers received cancellation notices overnight and arrived at airports to find no flights. Other carriers including Delta, United, American and Frontier offered rescue fares to stranded travelers. Refunds for credit or debit card purchases will be processed automatically, while a bankruptcy court will handle vouchers and points.

The airline said it could not reimburse emergency hotel stays or replacement flights. The union representing Spirit workers called the shutdown devastating and demanded full severance and benefits for employees.

“All Spirit flights have been cancelled, and Spirit Guests should not go to the airport.”

“Spirit was in dire straits long before the war with Iran. Their model wasn't working.”