Spirit Airlines, the Florida-based budget carrier, has ceased all operations following the collapse of bailout negotiations with the Trump administration. The airline announced early Saturday that it initiated an orderly wind-down effective immediately, canceling all flights as of 3 a.m.
Spirit Aviation Holdings cited surging jet fuel costs from the Iran war and other business pressures as key factors impacting its financial outlook. With no additional funding available, the company stated it had no choice but to shut down. The carrier, which filed for bankruptcy twice since 2024—most recently in August 2025—had sought a $500 million federal bailout that would have given the U.S. government a 90% stake. Talks broke down amid opposition from creditors including Citadel and Ares Management.
Department of Transportation Secretary Sean Duffy confirmed Spirit has reserves to refund tickets bought directly with credit or debit cards. Travelers who booked through third parties must contact their providers. The airline urged passengers not to go to airports and set up a website for shutdown questions.
The shutdown stranded passengers nationwide, with 277 flights canceled overnight after over three decades of service. Airlines including Delta, United, JetBlue, Southwest, and American offered capped rescue fares for rebooking. Thousands of employees, estimated at 14,000 to 17,000, lost their jobs abruptly. At Detroit Metropolitan Airport, Spirit check-in areas stood empty, with kiosks displaying cancellation notices.