Spirit Airlines has shut down operations after failing to secure a last-minute bailout deal, ending the run of one of the United States’ most well-known low-cost carriers. The airline halted all flights before dawn on Saturday following unsuccessful negotiations with bondholders over a rescue plan. The closure comes during Spirit’s second bankruptcy process in less than a year, as it struggled with rising costs and financial pressure.
Spirit, known for its ultra-low fares and no-frills service, faced increasing challenges from higher fuel prices, growing competition, and changing consumer demand. The recent surge in jet fuel costs further strained its finances, leaving the airline unable to continue operations.
The company said around 17,000 jobs have been affected by the shutdown. It also confirmed that all flights have been cancelled, with customers to receive refunds for bookings made through card payments.
Spirit’s final flight, from Detroit to Dallas, landed shortly after midnight, marking the end of more than three decades of operations.
The airline had been seeking financial support, including a proposed government-backed loan, but failed to reach an agreement with lenders and bondholders. Officials indicated that additional funding required to sustain operations was not secured.
Industry analysts say the shutdown could lead to higher airfares on certain routes, although other airlines are expected to increase capacity to fill the gap left by Spirit.
Spirit Airlines had played a significant role in making air travel more affordable in the United States, and its closure marks a major shift in the country’s low-cost aviation segment.
