Spirit Airlines ceased all operations early Saturday morning after failing to secure a $500 million federal bailout amid soaring fuel prices triggered by the U.S.-Iran conflict.
The Florida-based low-cost carrier, which had filed for Chapter 11 bankruptcy twice since 2024—most recently in August 2025—announced an orderly wind-down due to depleted cash reserves and insurmountable financial pressures. CEO Dave Davis stated that the sudden rise in fuel costs left the company without sufficient liquidity, requiring hundreds of millions more dollars it could not obtain.
Prior attempts to merge with JetBlue and others fell through, while fleet reductions and crew cutbacks proved insufficient. Talks with the Trump administration collapsed over creditor opposition, including from Citadel and Ares Management, whose counterproposal was rejected. Transportation Secretary Sean Duffy noted a creditor issue derailed the rescue, despite presidential efforts.
All flights stand cancelled, with automatic refunds processed for credit or debit card purchases. Travelers booking through third parties must contact their providers. The airline established a website for shutdown-related inquiries. Spirit’s heavy reliance on leisure travel, fragmented network, and rising competition from carriers like Frontier exacerbated its vulnerabilities as jet fuel prices doubled.