Spirit Airlines is shutting down after failing to secure a bailout

Spirit Airlines is closed.

Before dawn Saturday, the carrier suspended operations after failing to reach an agreement with bondholders on an eleventh-hour bailout from the Trump administration.

This sealed the fate of the popular American budget airline known for its bright yellow planes, cheap fares, simple service and fees for everything else that became a focus even as it pioneered discount air travel in the United States and made flights more accessible to millions.

“We regret to inform you that all Spirit Airlines flights have been cancelled, as of now,” read a message when opening the Spirit app.

Seizing a chance to survive its second bankruptcy filing since November 2024, Spirit’s closure marks the end of the South Florida airline’s years-long struggle with a host of problems: a failed merger, changing consumer tastes, growing competition and rising costs — most recently for jet fuel.

Spirit said that 17,000 direct and indirect employees lost their jobs.

Time was running out. The airline’s lawyer, Marshall Hubner, told a New York bankruptcy court on April 23 that Spirit’s money “won’t last much longer.”

The airline said it will automatically refund flights purchased through Spirit using a credit or debit card. (Read more about next steps here.)

For years, Spirit kept competitors on their toes with its low prices and was profitable until rapid growth, rising costs and other challenges it faced after the pandemic. Experts said its closure could lead to higher prices in some markets, although the carrier has significantly reduced its services in recent months. Other airlines are likely to add more flights at airports served by Spirit.

Spirit flight NK1833, a 2-hour, 39-minute flight from Detroit to Dallas-Fort Worth International Airport, was the last to land shortly after midnight local time, according to the company and Flightradar24 data. Spirit said the plane transported more than 50,000 people over the past day.

“For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while promoting affordability throughout the industry,” Spirit CEO Dave Davis said in announcing Spirit’s closing.

Davis thanked the Trump administration, and “in particular” Commerce Secretary Howard Lutnick, for their efforts to save the airline.

Earlier, people familiar with the matter said the budget airline was preparing to shut down after failing to reach an agreement on the lifeline. The sources requested anonymity because they were not authorized to talk about the discussions.

The airline had expected to emerge from bankruptcy protection mid-year before the jump in fuel prices, but it still faces many of the same problems. Jet fuel costs have doubled in some places since the United States and Israel attacked Iran on February 28.

“The sudden and sustained rise in fuel prices in recent weeks has ultimately left us with no alternative but to pursue the orderly liquidation of the company,” Davis said.

“Sustaining the business would require hundreds of millions of additional dollars in liquidity that Spirit simply does not have and cannot obtain. This is extremely disappointing and not the outcome that any of us wanted,” he said.

After the Trump administration entered talks on a Spirit bailout, other low-fare airlines including Frontier Airlines and Avello last month sought $2.5 billion in federal aid from rising fuel prices.

Spirit also said it was hoping to work with its vendors in the long term.

“We are committed to working with our vendors through the liquidation process and will reach out in the coming days to discuss next steps. Any outstanding claims will need to be addressed through the bankruptcy process,” Spirit said. She added that sellers will receive direct communications from the courts.

Last month, the Trump administration offered a $500 million loan that would have given the government up to 90% equity in the Florida-based airline. But talks with bondholders over the government bailout this week failed to reach an agreement.

Some opposition to the deal has emerged, including from Republicans and Transportation Secretary Sean Duffy, who told Reuters last month: “What we don’t want to do is put good money after bad money, and a lot of money has been thrown at Spirit, and they haven’t found their way to profitability,” Duffy said in an interview with Reuters. “So can we forestall the inevitable and then own it?”

President Donald Trump said earlier Friday that his administration had extended a “final” rescue proposal, though bondholders and the government were ultimately unable to agree on terms.

“I would say we’re leading to a tough deal, but one of those things is we’re going to do it, or we’re not going to do it,” Trump told reporters on Friday. “Other lenders seem to object. They think the priority will decline.”

“We come first,” Trump said.

Other airlines said they plan to help Spirit Airlines customers and crews.

Southwest Airlines It said it would offer discounted flights at airports on overlapping routes with Spirit. The carrier said flights of up to 500 miles will cost $200, up to 1,000 miles will cost $300, and more than 1,000 miles will cost $400.

United Airlines She said she was also setting prices for Spirit customers at $299, but most prices were at $199, and gave instructions to stranded crew members. American Airlines, JetBlue Airlines and Frontier Airlines Rescue fares are also planned for spiritual travellers.

Spirit carried about 1.7 million domestic passengers in the U.S., with a 3.9% market share in the U.S., as of February, according to aviation data firm Cirium. This is down from a market share of 5.1% last year, as the airline canceled flights to cut costs.