Spirit Airlines canceled every flight Saturday and told passengers not to go to the airport after the budget carrier ran out of funding and began shutting down operations.
Company Says Fuel Prices Forced Wind-Down
Spirit Aviation Holdings, Inc., the parent company of Spirit Airlines, announced the wind-down on May 2 and said the move took effect immediately.
The company said it spent months trying to restructure the business and pursue transactions that could strengthen its financial position. Spirit attributed the shutdown to a “material increase in oil prices” and other business pressures that damaged the airline’s financial outlook.
Spirit said it had no additional funding available.
CEO Says Spirit Had No Alternative
Spirit President and CEO Dave Davis said the airline had reached an agreement with bondholders in March 2026 on a restructuring plan that would have allowed Spirit to continue operating.
“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,” Davis said.
Davis said the recent spike in fuel prices changed the company’s path.
“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,” Davis said. “Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure. This is tremendously disappointing and not the outcome any of us wanted.”
No Bailout As Spirit Runs Out Of Options
The shutdown came after Spirit ran out of options to keep the airline operating.
As previously reported by The Dallas Express, Spirit had been seeking a possible $500 million government aid package while creditors objected to the proposal’s terms. The airline continued normal flight operations Friday while officials, creditors, and company representatives tried to prevent a collapse.
President Donald Trump said Friday that his administration had looked at a possible rescue but would only move forward if the deal made sense.
“Well, I guess we’re looking at it. If we can do it, we’ll do it, but only if it’s a good deal,” Trump told reporters while departing the White House, CBS News reported. “I’d like to save the jobs, but we’ll have an announcement sometime today. We gave them a final proposal.”
Trump also pointed to the potential job losses.
“It’s 14,000 jobs,” Trump said. “I would say we’re driving a tough deal.”
Spirit’s own statement attributed the shutdown to higher oil prices, business pressures, and the company’s inability to obtain the hundreds of millions of dollars in liquidity needed to keep operating.
Passengers Told Not To Go To Airport
Spirit said travelers should not go to the airport.
The company will automatically process refunds for passengers who bought flights directly through Spirit with a credit or debit card. Spirit said it will return those refunds to the original form of payment.
Passengers who booked through a travel agent should contact the agent directly to request a refund.
Travelers who used a voucher, credit, or Free Spirit points may face a longer wait. Spirit said those customers will have to seek compensation later through the bankruptcy process.
Davis thanked the Trump administration, Commerce Secretary Howard Lutnick, the U.S. Department of Commerce, and the U.S. Department of Transportation for trying to preserve jobs and reduce travel disruption.
“I want to thank the Administration, in particular Secretary Howard Lutnick and the U.S. Department of Commerce, for their extraordinary efforts to try to preserve jobs and service across the country, along with the U.S. Department of Transportation for their assistance to minimize the disruption to our Guests in the days and weeks ahead,” Davis said.
Spirit directed passengers to its restructuring website for more information about the wind-down.
Final Flights Sign Off Overnight
The final hours of Spirit’s operation also played out over airport radios.
At Dallas Fort Worth International Airport, an American Airlines employee offered well wishes to Spirit employees on one of the airline’s final flights, according to air traffic control audio obtained by LiveATC.com and reported by CBS News.
“Sorry to hear what happened,” the American Airlines employee said.
About 10 minutes later, the pilot of Spirit’s final flight at DFW asked a controller whether any more Spirit flights would land.
“I don’t see anything,” the controller replied. “You might be the last one.”
“This is it tonight,” the pilot said.
Air traffic control staff at Chicago O’Hare International Airport also offered well wishes to Spirit employees during the airline’s final operations, according to the report.
“It’s hard to believe this is it,” a Spirit pilot said in the audio.
“Yeah, no kidding,” tower staff replied. “It’s been a pleasure to talk with you guys on the radios. Hope you guys can make it out OK.”
Pilots Union Calls Closure Devastating
The Air Line Pilots Association said Spirit’s closure hit more than 2,000 pilots and thousands of other employees.
The closure is “a devastating blow to more than 2,000 ALPA pilots and thousands of other hardworking employees who dedicated their careers to this airline,” the union said, CBS News reported.
The union said Spirit employees “deserved better than this outcome.”
Transportation Secretary Sean Duffy said Saturday during a news conference that other airlines are offering preferential interviews to Spirit employees who lost their jobs.
