Spirit Airlines goes out of business after 34 years

Spirit Airlines, an impish upstart that shook the industry with its irreverent ads and deep discount fares, announced on Saturday that it has gone out of business after 34 years.

The ultralow cost airline that once operated hundreds of daily flights on its bright yellow planes and employed about 17,000 people said it had “started an orderly wind-down of our operations, effective immediately.” The airline said on its website that all flights have been canceled and customer service is no longer available.

“We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our guests for many years to come,” the announcement said.

US Transportation Secretary Sean Duffy said Saturday that Spirit had a reserve fund set up for customers who bought directly from the airline to get refunds. People who bought from third-party vendors like travel agents would have to seek refunds from them.

He had a stark message for people flying with Spirit.

“If you have a flight scheduled with Spirit Airlines, don’t show up at the airport. There will be no one here to assist you,” Duffy said.

He said United, Delta, JetBlue and Southwest were offering $200 one-way flights for people who could confirm that they had Spirit confirmation numbers and proof of purchase for a limited time.

Duffy also said other airlines would help with Spirit employees who might be stranded as well as offering them a preferential application process as they look for work.

Spirit said in a statement it was working to get more than 1,300 crew to their home bases and that the final Spirit flight landed at Dallas Forth Worth International Airport from Detroit Metropolitan Airport.

The company advised customers that they could expect refunds but there would be no help in booking travel on other airlines.

The Trump administration had considered a government bailout for the cash-strapped business to keep it from going under, but a deal was not reached.

Of the potential bailout, Duffy said Saturday “we often times don’t have half a billion dollars laying around.” Trump had floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years with jet fuel prices soaring because of the Iran war.

As late as Friday afternoon, President Donald Trump had said that “we’re looking at it” and had given the budget carrier a “final proposal” for a taxpayer-funded takeover.

Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt.

By the time it filed for Chapter 11 protection in November 2024, Spirit had lost more than $2.5 billion since the start of 2020.

The budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion in debts and $8.6 billion in assets, according to court filings.

The White House had blamed President Joe Biden administration for Spirit’s tenuous financial situation. Biden, a Democrat, opposed a proposed merger between Spirit and JetBlue in 2023.

On Saturday, Trump administration officials took to social media to amplify voices of conservative critics who faulted Biden for Spirit’s demise.

Supporters of a rescue including labour unions representing Spirit’s pilots, flight attendants and ramp workers said a collapse would put thousands of Americans out of work and hurt consumers by reducing airline competition and increasing airfares. About 17,000 jobs could be impacted, according to Spirit lawyer Marshall Huebner.

Budget-conscious and leisure travelers would likely feel Spirit’s absence the most, especially in places where the airline has a big footprint such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando.

The carrier flew about 1.7 million domestic passengers in February, roughly half a million fewer than during the same month a year earlier, according to aviation analytics firm Cirium.

Spirit also has sharply reduced its capacity, with about half as many seats available this month than in May 2024.

 Associated Press