Spirit Airlines shuts down after failing to reach a bailout deal, ending discount travel era

Spirit Airlines has shut down.

Before dawn Saturday, the carrier ceased operations after failing to secure an agreement with bondholders on an 11th-hour bailout from the Trump administration.

That sealed the fate of the iconic U.S. budget airline known for its bright yellow planes, cheap fares and no-frills service and fees for everything else that had become a punchline though it had pioneered discount air travel in the U.S. and made flights more affordable for millions.

“We regret to inform you that all Spirit Airlines flights have been canceled, effective immediately,” read a message when opening Spirit’s app.

Grasping for a chance at survival in its second bankruptcy filing since November 2024, Spirit’s shuttering marks the end of the South Florida airline’s yearslong struggle with a host of problems: a failed merger, shifting consumer tastes, surging competition and soaring costs — most recently for jet fuel.

Spirit said 17,000 direct and indirect employees have lost their jobs.

Time had been running out. The airline’s lawyer, Marshall Huebner, told a bankruptcy court in New York on April 23 that Spirit’s cash “is not going to last for very much longer.”

The airline said it will automatically refund flights purchased through Spirit with a credit card or debit card.

End of an era

For years, Spirit kept competitors on their toes with its low fares and was profitable until fast growth, escalating costs and other challenges caught up to it after the pandemic. Experts said its shuttering could lead to higher fares in some markets, though the carrier had drastically reduced service in recent months. Other airlines are likely to add more flights at airports that Spirit serves.

Spirit’s NK1833, a two-hour and 39-minute flight from Detroit to Dallas Fort Worth International Airport, was its last that touched down shortly after midnight local time, according to the company and Flightradar24 data. It flew more than 50,000 people over the past day, Spirit said.

“For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while driving affordability across the industry,” Dave Davis, Spirit’s chief executive, said in Spirit’s shutdown announcement.

Davis thanked the Trump administration and, “in particular,” Commerce Secretary Howard Lutnick, for their efforts to save the airline.

Earlier, people familiar with the matter said the budget airline was preparing to shut down after it failed to reach a deal for a lifeline. The sources requested anonymity because they weren’t authorized to speak about the discussions.

The airline had expected to emerge from bankruptcy protection midyear before the jump in fuel prices but still had many of the same problems. Jet fuel costs have doubled in some places since the U.S. and Israel attacked Iran on Feb. 28.

Davis said that the “sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the Company.

“Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure. This is tremendously disappointing and not the outcome any of us wanted,” he said.

After the Trump administration entered talks for a Spirit bailout, other low-fare airlines including Frontier Airlines and Avelo last month sought $2.5 billion in federal relief from higher fuel prices.

Spirit also said it had hoped to work with its vendors for the long term.

“We are committed to working with our vendors through the wind-down process and will be in touch in the coming days to discuss next steps. Any outstanding claims will need to be addressed through the bankruptcy process,” Spirit said. It added that vendors will receive direct communication from courts.