FORT LAUDERDALE, USA — Spirit Airlines, the budget carrier that helped reshape low-cost flying in the United States, has ceased operations after 34 years, cancelling all flights and beginning what it called an orderly wind-down of its business.
The shutdown took effect on Saturday, May 2, 2026, after the company failed to secure additional financing or a government-backed rescue arrangement.
Spirit said passengers should not go to the airport and that customer service was 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 company said in a statement.
Fuel Costs and Bankruptcy Pressures
Spirit said its financial position had worsened sharply because of higher oil prices and other business pressures, leaving it without the liquidity needed to continue flying.
“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,” the airline said.
“With no additional funding available to the company, Spirit had no choice but to begin this wind-down.”
The airline had been trying to emerge from its second bankruptcy in less than a year.
It first filed for Chapter 11 protection in 2024, later secured court approval for a reorganisation plan, and then returned to bankruptcy proceedings in 2025 as demand weakened and operating costs rose.
Dave Davis, Spirit’s president and chief executive, said the company could not raise the funds needed to keep operating.
“Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure,” Davis said.
“This is tremendously disappointing and not the outcome any of us wanted.”
Refunds and Rebooking
Spirit said it would automatically process refunds for passengers who bought tickets directly from the airline with a credit or debit card.
Customers who booked through travel agents were directed to seek refunds through those agents.
The airline said passengers would not be reimbursed for additional costs caused by the cancellations, such as hotel stays, unless those expenses were covered by travel insurance.
Transportation Secretary Sean Duffy said the federal government had moved to help passengers and employees affected by the collapse.
He said major carriers, including United, Delta, JetBlue and Southwest, had agreed to cap ticket prices for Spirit customers trying to rebook cancelled flights.
“We’ve activated our airline partners to ensure passengers are not stranded, communities maintain route access, fares do not skyrocket, and Spirit’s workforce is connected to new job opportunities,” Duffy said.
Airlines for America, a trade group for major U.S. carriers, said several airlines were offering measures such as discounted “rescue fares,” capped prices on some Spirit routes, assistance for stranded crew members and employment opportunities for former Spirit workers.
End of a Low-Cost Pioneer
Spirit built its business around low base fares and added charges for services such as carry-on bags, seat assignments and drinks.
The model attracted price-sensitive travellers and helped push larger airlines to develop their own basic economy products.
At its peak in the mid-2010s, Spirit expanded quickly, opened dozens of routes and was valued at billions of dollars.
But the company struggled after the Covid-19 pandemic as travel patterns shifted, costs increased and competition intensified.
A proposed sale to JetBlue in 2022 was later blocked on antitrust grounds, removing one possible path to stabilising the carrier.
Talks with Frontier Airlines later failed to produce a deal.
Spirit traced its origins to a Michigan-based trucking company founded in the 1960s before beginning airline operations in the 1980s.
It later moved its headquarters to the Fort Lauderdale area of Florida.
At the end of 2025, the company employed about 17,000 people.
Its collapse leaves gaps on routes where it had been a major low-fare competitor, particularly in cities such as Fort Lauderdale, Orlando and Las Vegas.
