Spirit Airlines Files for Bankruptcy

Spirit Airlines announced it has ceased all operations effective immediately after 34 years in business, canceling all flights and ending customer service. The airline stated on its website that it is beginning an orderly wind-down process. This shutdown affects approximately 17,000 employees and contractors across the United States.

The carrier filed for Chapter 11 bankruptcy protection in November 2024 and again in August 2025, listing $8.1 billion in debts and $8.6 billion in assets, according to court documents. Spirit had reduced its flight capacity by about half compared to May 2024 levels.

Discussions for a potential $500 million bailout from the Trump administration did not result in an agreement. President Trump stated in a White House briefing that a final proposal was extended as late as Friday, but no deal was reached. " The White House press office noted that part of Spirit's financial difficulties were linked to the Biden administration's 2023 decision to block a proposed merger with JetBlue.

According to a Semafor report, Spirit's bondholders opposed the bailout terms proposed by the administration, leading to the talks' collapse. The bondholders' representatives argued in court filings that the proposed deal undervalued their interests and could lead to further losses. No public statements from the bondholders' group have been released beyond the filings.

Passengers reported arriving at airports on Saturday to find their flights canceled, with many seeking alternative travel options. " Spirit's website advised customers to expect refunds but provided no assistance for rebooking. Those who purchased tickets directly from the airline can access a reserve fund for refunds, while others must contact third-party vendors or credit card companies.

" Spirit lawyer Marshall Huebner estimated in bankruptcy proceedings that about 17,000 jobs could be affected.