Spirit Airlines to shutdown after 34 years with flights cancelled and 17,000 jobs in danger
America-based Spirit Airlines has gone out of business after 34 years, with all flights cancelled and 17,000 jobs at risk following the airline’s bankruptcy collapse
Spirit Airlines has shut down(Image: AFP via Getty Images)
Spirit Airlines, the upstart carrier that revolutionised the industry with its cheeky advertising and rock-bottom fares, has declared it’s ceased trading after 34 years.
The ultra-low-cost airline that previously ran hundreds of daily services on its distinctive bright yellow aircraft and employed roughly 17,000 staff announced it had “started an orderly wind-down of our operations, effective immediately“.
The carrier confirmed on its website that all flights have been grounded and customer service is no longer operational.
“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,” the statement read.
The firm told passengers they could anticipate refunds, though there would be no assistance with securing alternative travel arrangements.
The collapse had been anticipated after Friday passed without the crucial government bailout needed for the financially struggling business.
President Donald Trump revealed on Friday that his administration had presented the budget airline with a “final proposal” for a taxpayer-funded rescue to prevent its demise, but no agreement was struck.
Mr Trump had floated the bailout concept last week after the airline entered bankruptcy proceedings for the second time in under two years, with jet fuel costs spiralling due to the Iran war.
Approximately 17,000 positions could be affected by the closure, Spirit solicitor Marshall Huebner stated. Spirit has faced financial difficulties since the Covid-19 pandemic, burdened by soaring operational expenses and mounting debt.
When it filed for Chapter 11 protection in November 2024, Spirit had racked up losses exceeding 2.5 billion dollars from the beginning of 2020.
The low-cost airline sought bankruptcy protection once more in August 2025, reporting debts of 8.1 billion dollars against assets worth 8.6 billion dollars, according to court documents.
Advocates for a bailout, including trade unions representing Spirit’s pilots, cabin crew and ground staff, warned that a collapse would leave thousands of Americans jobless and harm consumers by diminishing airline competition and pushing up ticket prices.
Cost-conscious and holiday travellers would probably notice Spirit’s disappearance most acutely, particularly in locations where the carrier maintains a significant presence such as Las Vegas and the Florida hubs of Fort Lauderdale and Orlando.
The airline transported approximately 1.7 million domestic passengers in February, roughly half a million fewer than during the corresponding period the previous year, according to aviation analytics company Cirium.
Spirit has also dramatically cut its capacity, offering roughly half the number of seats available this month compared to May 2024.
