Spirit Airlines has announced the immediate shutdown of its operations after 34 years of service. The discount carrier, which had been in bankruptcy since August 2025, stated early Saturday that it had no choice but to wind down operations and liquidate its holdings. All flights have been canceled, and passengers have been advised not to go to the airport as customer service is no longer available, leaving many travelers and crew members stranded.
The collapse follows the failure of last-minute negotiations with creditors and the Trump administration. Spirit had been seeking a $500 million lifeline to prevent the company from going out of business. While the administration offered a final proposal on Friday, a deal could not be reached, and a subsequent board meeting ended without an agreement to rescue the company.
The airline's failure is attributed in part to a doubling of jet fuel prices resulting from a two-month-old Iran war, marking the first time a U.S. carrier has failed due to these specific costs. This financial pressure, which is squeezing the entire budget carrier industry, has resulted in the loss of thousands of jobs, including those of Spirit's 17,000 employees.
Spirit once reshaped U.S. air travel as an irreverent upstart that shook the industry with deep discount fares and unique advertising. However, years of struggle and a second bankruptcy in two years ultimately led to the end of the carrier's run.