WEST PALM BEACH, Fla. (AP) — After 34 years, Spirit Airlines, known for its bold advertisements and low-cost fares, has announced its closure.
The budget airline, which once operated hundreds of flights daily with its iconic yellow aircraft and employed around 17,000 staff, stated it has begun an “orderly wind-down of our operations, effective immediately.”
According to the airline’s website, all flights have been canceled, and customer service is no longer offered.
The announcement stated, “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.”
Spirit Airlines informed customers that while they can expect refunds, assistance in booking travel with other airlines will not be provided.
The Trump administration had explored the possibility of a government bailout to prevent the airline from going under, but no agreement was reached.
Transportation Secretary Sean Duffy mentioned that travelers with Spirit bookings could access special rates on other airlines for a limited period. Additionally, other carriers would assist Spirit pilots and flight attendants in returning to their home cities. He also advised travelers to check with their credit card companies or travel insurance policies regarding refunds.
Trump had suggested the idea of a bailout the previous week after Spirit entered bankruptcy proceedings for the second time in under two years, influenced by rising jet fuel prices due to the Iran war.
As recently as Friday afternoon, President Donald Trump remarked, “we’re looking at it,” referring to a “final proposal” for a taxpayer-funded takeover.
Spirit Airlines has faced financial difficulties since the COVID-19 pandemic, burdened by escalating operating expenses and increasing debt. By the time it filed for Chapter 11 protection in November 2024, the airline had accumulated over $2.5 billion in losses since the beginning of 2020.
The budget carrier filed for bankruptcy protection again in August 2025, reporting $8.1 billion in debts and $8.6 billion in assets, as per court documents.
Advocates for a bailout, including labor unions for Spirit’s pilots, flight attendants, and ramp workers, argued that the collapse would result in thousands of job losses and negatively impact consumers by reducing competition and increasing fares. Spirit lawyer Marshall Huebner mentioned that about 17,000 jobs could be affected.
Spirit’s absence would likely impact budget-conscious and leisure travelers the most, particularly in regions where the airline was prominent, such as Las Vegas and Florida’s Fort Lauderdale and Orlando.
In February, the carrier transported approximately 1.7 million domestic passengers, about half a million less than the same month the previous year, according to aviation analytics firm Cirium. Spirit also significantly reduced its capacity, with available seats this month being about half of those in May 2024.
AP writer Yamat reported from Las Vegas. Josh Funk contributed from Omaha, Nebraska.
