Spirit Airlines shutting down after rescue talks collapse

Spirit Airlines is shutting down after failing to secure a $500m bailout from the Trump administration. The carrier said in an announcement on its website on Saturday that with "great disappointment" it had "started an orderly wind-down of our operations, effective immediately". This included cancelling all of its flights, stranding many passengers and workers.

Spirit was emerging from its second bankruptcy filing in recent years before the US-Israel war in Iran, but the resulting surge in jet fuel costs pushed it over the brink. The company said, "All Spirit flights have been cancelled, and Spirit Guests should not go to the airport." The airline said it would automatically process refunds for flights purchased through Spirit with a credit or debit card to the original form of payment, but a bankruptcy court will determine how to compensate those who booked flights using a voucher, credit or airline points. Spirit's CEO Dave Davis said, "In March 2026, we reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business. However, 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."

Transportation Secretary Sean Duffy disputed that account on Saturday, saying Spirit's demise was not the result of fuel price increases, which are largely due to the war with Iran. Duffy said, "Spirit was in dire straits long before the war with Iran," citing the company's multiple bankruptcy filings. Other US airlines - including Delta Airlines, United Airlines, American Airlines and Frontier Airlines - have stepped in to offer "rescue fares" to stranded Spirit customers.