US carrier Spirit Airlines, used by thousands of Americans for its affordability, reported that all flights had been cancelled as a result of an “orderly wind-down of operations”, after a potential White House bailout failed to materialise.
The airline issued a statement on Saturday, “Spirit Aviation Holdings, Inc., parent company of Spirit Airlines … today regretfully announced that the Company has started an orderly wind-down of operations, effective immediately. All Spirit flights have been cancelled, and Spirit Guests should not go to the airport.”
As per the data from Cirium, Spirit had 4,119 domestic flights scheduled between May 1 and May 15, with a total of 809,638 seats.
The airline had earlier reached a deal with its creditors that would have helped overcome its second bankruptcy by late spring or early summer. However, with the US war on Iran causing a surge in jet fuel prices, the plans fell through.
A source close to the discussions told Reuters on Friday that Spirit’s board meeting ended without an agreement to rescue to company.
“Unfortunately, despite the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” Spirit said.
Trump announced on Friday that the White House had given Spirit and its lenders a final rescue proposal, after talks suffered a standstill over a $500 million financing package that would have helped the airline survive the bankruptcy.
Trump said, “If we can help them, we will, but we have to come first. If we could do it, we’d do it, but only if it’s a good deal.”
Spirit’s restructuring plan had an assumed jet fuel cost of around $2.24 a gallon in 2026 and $2.14 in 2027. However, the global energy crisis due to the ongoing war has triggered a spike in the prices to $4.51 a gallon by the end of April, making it almost impossible for the airline to survive without new funding.
Transportation Secretary Sean Duffy told Reuters he had approached different airlined to buy Spirit but found no buyers.
He said in a news conference on Saturday that reserve funds were set up to refund customers who bought directly from the airline whereas those who bought from third-party vendors would have to approach them for the refunds. He also informed that airlines such as United, Delta, JetBlue, and Southwest, were offering $200 one-way flights for passengers who had proof of a canceled Spirit flight.
