Spirit Airlines announced Saturday that it has canceled all flights as it begins an “orderly shutdown,” citing a surge in fuel prices in recent weeks that has left them with no other option. The struggling airline, which was preparing to exit its second bankruptcy in a year, said it would cease operations after a potential bailout from the White House did not materialize.
For customers, the airline said it will automatically refund all flights purchased with a credit or debit card and return the amount to the original payment method.
“It is with great disappointment that Spirit Airlines has begun to cease its global operations, effective immediately. All flights have been canceled and customer service is no longer available. While we are unable to help rebook your flight on another airline, we will automatically process refunds for all flights purchased through Spirit with a credit or debit card to the original payment method,” the airline said in a statement.
He adds: “We are proud of the impact our ultra-low-cost model has had on the industry over the last 33 years and we hope it will serve our guests for many years to come.”
Spirit Airlines said its website displayed a notice informing passengers that “customer service is no longer available” while assuring that refunds for purchased tickets would be processed.
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Jet fuel prices have risen to more than double their previous levels since the conflict with Iran began in February, forcing major U.S. airlines to cut profit forecasts, scale back expansion plans or take both measures.
Spirit President and CEO Dave Davis responds
Davis said in March that the company had reached an agreement with bondholders on a restructuring plan that would allow it to continue operating as a viable business.
“However, the sudden and sustained increase in fuel prices in recent weeks ultimately left us with no choice but to seek an orderly liquidation of the Company. Keeping the business going required additional hundreds of millions of dollars in liquidity that Spirit simply did not have and could not procure. This is a huge disappointment and an outcome that none of us wanted,” said David.
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Meanwhile, US President Donald Trump said on Friday that a “final draft” of a rescue package had been submitted to Spirit Airlines. Trump administration officials also criticized the former Joe Biden administration for blocking a proposed $3.8 billion takeover of the airline JetBlue, arguing that the move would negatively affect consumers.
In a statement, Spirit said there was an “extensive and comprehensive effort to restructure the business”, but added that the absence of additional funding meant it had “no choice but to commence this liquidation”.
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Jan Brueckner, professor emeritus of economics at the University of California, Irvine, told AFP last week that the spike in fuel prices was “the straw that broke the camel’s back”.
American Airlines said early Saturday that it was in contact with U.S. authorities regarding “steps we are taking to help mitigate the impact on the communities Spirit serves and the traveling public.” The airline added that it is offering “rescue fares” on Spirit’s routes.
United Airlines also said they provide “restricted fare one-way tickets from most cities served by Spirit.”
Spirit Airlines, which began operations in 1992, was widely recognized for its yellow planes and as of 2024 had more than 11,000 employees.
