Spirit Airlines has announced the immediate cessation of its operations after 34 years of business. The budget carrier, which had been in bankruptcy since August 2025, has cancelled all flights and disabled its customer service, leaving passengers and crew members stranded.
The shutdown comes after a rescue attempt by the Trump administration stalled. President Donald Trump indicated that his administration had provided a final proposal for a taxpayer-funded takeover to save jobs, but no deal was reached. Spirit had been seeking a $500 million lifeline, but negotiations failed as bondholders balked at the terms. A final board meeting ended without an agreement to rescue the company.
The collapse was driven by a lack of cash and the soaring cost of jet fuel, which doubled during a two-month-old war in Iran. Spirit is the first U.S. airline to fail due to these fuel price increases. The wind-down of operations will result in the loss of thousands of jobs, affecting the company's 17,000 employees. Once known for reshaping U.S. air travel with deep discount fares, Spirit will now liquidate its holdings.