Spirit Airlines, a low-cost airline in the US, is reportedly planning to halt operations as early as today, a move that could leave passengers stranded, CBS News reported.
The report, citing sources, said the airline’s creditors are now questioning the carrier’s ability to repay upcoming debts in part because of higher jet fuel costs amid the ongoing war between the US and Iran.
The budget carrier had more than 200 planes when it filed for bankruptcy last August. However, the company now plans to reduce to around 80 aircraft by the third quarter.
Travelers must have a backup: Experts
In an interview with passengers at BWI Airport, CBS said passengers rely on Spirit Airlines because of its low fares on shorter routes. Travelers are reportedly asking for options that could compete with Spirit for its low fares.
Citing experts, the report added that those flying Spirit should have a backup plan. While Spirit Airlines is still selling tickets, if the company’s creditors decide to liquidate, the airline could be forced to cease operations without notice.
Spirit Airlines faces liquidation
According to Bloomberg, any decision on a possible liquidation could come as early as this week, though the situation remains volatile as Spirit negotiates with its creditors.
The development of the possible liquidation comes as Spirit Airlines pursues a deep restructuring aimed at cutting costs and stabilizing its finances after twice filing for bankruptcy.
In August 2025, it filed for bankruptcy protection a second time with 214 aircraft. The Florida carrier emerged from its first bankruptcy, which was announced in March of last year. Last month, Spirit said it planned to reduce its fleet to about one-third its pre-bankruptcy size.
Last month, Spirit said it planned to reduce its fleet to about one-third its pre-bankruptcy size. The budget carrier also recalled nearly 500 pilots it laid off in 2025 as it prepared to emerge from a second bankruptcy. It also reached a restructuring deal with its creditors that would allow it to exit bankruptcy in late spring or early summer, Reuters reported. The company now plans to operate as a leaner airline, focusing on routes and travel peaks where demand is strongest.
The ultra-low-cost carrier positioned its turnaround on fuel costs to average about $2.24 a gallon in 2026 and $2.14 in 2027, based on its March information. In mid-April, jet fuel prices were around $4.24 a gallon, roughly double the level assumed in its projections.
According to the company’s March filing, it addressed rising fuel costs by increasing fares and reducing capacity. It also says the downturn provides flexibility to further reduce capacity and fixed costs if fuel prices remain elevated.
Rising jet fuel prices have disrupted the global aviation industry, forcing airlines to raise prices and revise their financial outlooks. Prices surged after the U.S. and Israel targeted Iran in late February, rocking both aviation and energy markets, with airspace and the Strait of Hormuz closures compounding the impact.
