Low-cost Spirit Airlines announced early Saturday that it would shut down its operations immediately after 34 years in business, leaving thousands of passengers scrambling to rebook their travel on other airlines.
The company, which operated hundreds of daily flights across the U.S. and employed 17,000 people, had been in discussions with the Trump administration about a $500m rescue package, but no deal was reached.
But the effort has stalled because Spirit has been unable to secure the necessary backing from bondholders and government stakeholders, people familiar with the matter told the Wall Street Journal on Friday.
The airline said on its website that all flights have been canceled and customer service is no longer available.
“We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our guests for many years to come,” the announcement said.
The company advised customers that they could expect refunds but there would be no help in booking travel on other airlines.
Duffy told a Saturday press conference at Newark Liberty International Airport that the Trump administration had made “a significant effort” to try and keep the airline afloat.
“There was a number of ideas being floated on how the government could step in and be helpful to Spirit Airlines,” Duffy said. “The president was like a dog on a bone trying to figure out a way to keep Spirit afloat.”
What should Spirit passengers do?
Thousands of Spirit passengers must now scramble to find seats on other flights or make other travel arrangements.
In its announcement, Spirit told passengers it could not help them rebook their travel on another airline but would automatically issue a refund to those who had bought through the company with a credit or debit card.
Passengers who booked flights via a travel agent “should contact the travel agent directly to request a refund,” Spirit said.
Transportation Secretary Sean Duffy announced on Saturday that United, Delta and Southwest will cap their ticket prices for Spirit customers trying to rebook their flights. Passengers will be asked to provide their Spirit confirmation number and proof of payment.
“For any consumers worried about higher prices, American Airlines and Delta Air Lines are offering reduced fares on high-volume Spirit routes,” Duffy said in a post on X. “Allegiant has also committed to freezing fare prices across routes that overlap with Spirit. To support impacted travelers, Frontier is offering up to 50% off base fares across its network until May 10.”
He also said that other carriers would help Spirit pilots and flight attendants return to their home cities. In a statement, he said travelers could check with their credit card company or travel insurance policy about refunds.
Trump had floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years with jet fuel prices soaring because of the Iran war.
As late as Friday afternoon, President Donald Trump had said that “we’re looking at it” and had given the budget carrier a “final proposal” for a taxpayer-funded takeover.
Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had lost more than $2.5 billion since the start of 2020.
The budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion in debts and $8.6 billion in assets, according to court filings.
Supporters of a rescue including labor unions representing Spirit’s pilots, flight attendants and ramp workers said a collapse would put thousands of Americans out of work and hurt consumers by reducing airline competition and increasing airfares. About 17,000 jobs could be impacted, according to Spirit lawyer Marshall Huebner.
Budget-conscious and leisure travelers would likely feel Spirit’s absence the most, especially in places where the airline has a big footprint such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando.
The carrier flew about 1.7 million domestic passengers in February, roughly half a million fewer than during the same month a year earlier, according to aviation analytics firm Cirium. Spirit also has sharply reduced its capacity, with about half as many seats available this month than in May 2024.
The Associated Press contributed to this report.
