Spirit Airlines closes after failing to get a bailout

Spirit Airlines has closed.

Before dawn on Saturday, the airline ceased operations after failing to reach an agreement with bondholders on a last-minute bailout from the Trump administration.

That sealed the fate of the iconic American low-cost airline, known for its bright yellow planes, cheap fares and simple services and fees for everything else, which had become a joke even though it had pioneered discount air travel in the United States and made flying more affordable for millions.

“We regret to inform you that all Spirit Airlines flights have been canceled effective immediately,” reads a message when you open the Spirit app.

Seeking a chance to survive in its second bankruptcy filing since November 2024, Spirit's closure marks the end of the South Florida airline's years-long struggle with a host of problems: a failed merger, changing consumer tastes, growing competition and rising costs, most recently from jet fuel.

Spirit said 17,000 direct and indirect employees have lost their jobs.

Time was running out. The airline's attorney, Marshall Huebner, told a New York bankruptcy court on April 23 that Spirit's cash “isn't going to last much longer.”

The airline said it will automatically refund flights purchased through Spirit with a credit or debit card. (Read more about next steps here.)

For years, Spirit kept its competitors on their toes with its low fares and was profitable until rapid growth, rising costs and other challenges caught up with it after the pandemic. Experts said its closure could lead to higher fares in some markets, although the airline had sharply reduced service in recent months. Other airlines are likely to add more flights at airports where Spirit operates.

Spirit NK1833, a two-hour, 39-minute flight from Detroit to Dallas Fort Worth International Airport, was the last to land shortly after midnight local time, according to the company and data from Flightradar24. It transported more than 50,000 people over the past day, Spirit said.

“For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while driving affordability across the industry,” Spirit CEO Dave Davis said in announcing Spirit's closure.

Davis thanked the Trump administration and “in particular” Commerce Secretary Howard Lutnick for their efforts to save the airline.

Previously, people familiar with the matter said the low-cost airline was preparing to close after it failed to reach a deal for a lifeline. The sources requested anonymity because they were not authorized to speak about the discussions.

The airline had hoped to emerge from bankruptcy protection by mid-year before rising fuel prices, but it still had many of the same problems. Jet fuel costs have doubled in some places since the United States and Israel attacked Iran on February 28.

Davis said that “the sudden and sustained rise in fuel prices in recent weeks has ultimately left us no alternative but to pursue an orderly liquidation of the Company.”

“Maintaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and was unable to obtain. This is tremendously disappointing and not the outcome any of us wanted,” he said.

After the Trump administration began talks on a bailout for Spirit, other low-fare airlines, including Frontier Airlines and Avelo, last month requested $2.5 billion in federal aid over higher fuel prices.

Spirit also said it looked forward to working with its suppliers for the long term.

“We are committed to working with our suppliers during the liquidation process and will be in touch in the coming days to discuss next steps. Any outstanding claims will need to be addressed through the bankruptcy process,” Spirit said. He added that suppliers will receive direct communication from the courts.

Last month, the Trump administration offered a $500 million loan that could have given the government up to a 90% stake in the Florida-based airline. But talks with bondholders for a government bailout this week failed to reach an agreement.

Some opposition to the deal emerged, including from Republicans and Transportation Secretary Sean Duffy, who told Reuters last month: “What we don't want to do is put good money after bad, and a lot of money has been thrown at Spirit, and they haven't found their way to profitability,” Duffy said in an interview with Reuters. “And so could we just anticipate the inevitable and then take it?”

President Donald Trump said earlier on Friday that his administration had extended a “final” bailout proposal, although bondholders and the government ultimately could not agree on terms.

“I would say we're pushing for a tough deal, but it's one of those things that we'll either do it or we won't,” Trump told reporters on Friday. “It seems like the other lenders are blocking. They think their priority will be downgraded.”

“We come first,” Trump said.

Other airlines said they plan to help Spirit customers and crews fly.

Southwest Airlines said it will offer discounted flights at airports on overlapping routes with Spirit. Flights up to 500 miles will cost $200, up to 1,000 miles will cost $300 and more than 1,000 miles will cost $400, the airline said.

united airlines said it is also capping fares for Spirit customers at $299, but that most fares were priced at $199, and it gave instructions to stranded crew members. american airlines, JetBlue Airways and Border Airlines Rescue fees were also planned for Spirit travelers.

Spirit carried about 1.7 million U.S. domestic passengers, with a 3.9% U.S. market share, through February, according to aviation data firm Cirium. That was down from last year's 5.1% market share as the airline eliminated flights to cut costs.