Spirit Airlines says it has “started an orderly wind-down of our operations, effective immediately” while talks with the federal government over a reported $500 million rescue remain unresolved.
Spirit’s final flight, Flight 1833 from Detroit to Dallas, landed early Saturday morning. The airline says it flew more than 50,000 passengers over the past day and is working to get more than 1,300 crew safely home to their bases. A Spirit spokesperson said the majority of employees learned of the closure through media reports that they were about to lose their jobs.
Data from Airline Data Inc. showed Spirit was scheduled to operate 277 flights Saturday; all have been canceled. On its website Spirit posted: “To our Guests: all flights have been cancelled, 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 Wall Street Journal first reported Spirit was preparing to shut down operations early Saturday. Earlier Friday, President Donald Trump said an announcement about a potential airline rescue deal was possible and that “if we could do it, we do it, but only if it’s a good deal.” ABC News has reached out to the White House for comment. A Spirit spokesperson declined to comment on ongoing discussions; earlier Friday the airline had said, “Spirit is operating as usual” before issuing the wind-down notice.
Other carriers and regulators are preparing to help passengers. The Department of Transportation announced most airlines would cap ticket prices for Spirit travelers who need to rebook canceled flights, and some carriers cut fares on high-volume routes previously served by Spirit. American Airlines said it will offer fare caps on main cabin tickets for routes it shares with Spirit. United said it is “preparing to support Spirit customers in the event of a shut down.” Frontier posted that it is “ready to support customers who may be impacted,” focusing on low-fare options.
ABC News previously reported that Spirit could run out of cash within days, not weeks. Spirit filed for Chapter 11 bankruptcy for the second time last August — having previously filed in November 2024 — to restructure financially and “reduce its cost structure,” with hopes of emerging from Chapter 11 by spring or summer 2026. Rising jet fuel prices amid the ongoing war in Iran have strained airlines; airfare monitor Katy Nastro said a second bankruptcy within six months and higher fuel costs “is a recipe for disaster” for Spirit.
What travelers need to know
– Immediate status: Spirit instructs travelers not to go to the airport. All flights are canceled and customer service is no longer available. The airline said it will automatically issue refunds for flights purchased with a credit or debit card to the original form of payment. Passengers who booked through travel agents should contact the agent directly for refunds. Compensation for tickets bought with vouchers, credits, or Free Spirit points will be determined later through the bankruptcy process.
– Stranded passengers and industry impact: When airlines liquidate they typically cease operations without notice, leaving passengers stranded and employees without work. Travel and crisis experts warn that losing a low-cost carrier like Spirit will raise the floor on airfares. Bradley Akubuiro, a crisis expert and former Boeing spokesperson, said Spirit dominated many low-fare markets (Fort Lauderdale, Orlando, parts of the Caribbean) and that fares that were once $89 could rise to $140 over months. Competing low-cost carriers (Frontier, Allegiant, Breeze) remain, but may not immediately match Spirit’s capacity or prices.
– Help from other airlines:
– United: For the next two weeks, customers booked on Spirit can buy one-way United tickets from most cities Spirit served — including Atlanta, Chicago, Fort Lauderdale, Houston, Las Vegas, Miami, Newark, New Orleans and Orlando. United has capped most fares at $199, with longer flights capped at $299. Travelers must enter their Spirit confirmation number and verify they were scheduled to travel between May 2 and May 16 to qualify.
– American Airlines: Launched a site with rescue fares for many domestic and international destinations and is adding capacity (bigger planes, more flights) on routes Spirit used to serve. American says it operates the majority of Spirit’s former routes.
– Consumer options and tips:
– Don’t immediately cancel your flight. Travel experts warn that cancelling can forfeit your right to a refund.
– Keep all booking records, receipts, and communications.
– If you paid by credit card, you can dispute the charge with your card issuer and may get a refund. Debit card protections are weaker, but contact your bank to ask about reimbursement options.
– Check your travel insurance policy; not all policies cover airline liquidations.
– The Department of Transportation says customers can file a proof of claim in the bankruptcy proceeding to try to recover funds, but claims are adjudicated with other creditors and refunds may be partial.
– If stranded, look for relief flights, fare caps, or emergency fares from other carriers — airlines have been signaling they will help customers impacted by a Spirit shutdown similar to relief after major weather events.
Spirit statement cited the recent material increase in oil prices and other pressures as severely impacting its financial outlook, saying, “With no additional funding available to the Company, Spirit had no choice but to begin this wind-down.”
– Final notes: Expect evolving guidance from government agencies, other airlines, and the bankruptcy court. Travelers with upcoming Spirit bookings should monitor communications from their travel provider, check flight status often, and explore rebooking options with other carriers.