Spirit Airlines, an impish upstart that shook the industry with its irreverent ads and deep discount fares, announced Saturday that it has gone out of business after 34 years. The ultra-low-cost airline that once operated hundreds of daily flights on its bright yellow planes said it had "started an orderly wind-down of our operations, effective immediately," per the AP. The airline said on its website that all flights have been canceled and customer service is no longer available. A message on its homepage now reads: "Spirit is winding down all operations."
"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 announcement said. The company advised customers that they could expect refunds but that there would be no help in booking travel on other airlines. Transportation Secretary Sean Duffy said that travelers booked on Spirit flights could access special prices on a group of other airlines for a limited time, adding that other carriers would help Spirit pilots and flight attendants return to their home cities. In a statement, Duffy noted that travelers could check with their credit card company or travel insurance policy about refunds.
President Trump had floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years, as jet fuel prices soar because of the Iran war. As late as Friday afternoon, Trump had said that "we're looking at it" and had given the budget carrier a "final proposal" for a taxpayer-funded takeover. Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it filed for Chapter 11 protection in November 2024, the airline had lost more than $2.5 billion since the start of 2020.
The budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion in debt and $8.6 billion in assets, per court filings. Supporters of a rescue, including labor unions representing Spirit's pilots, flight attendants, and ramp workers, said a collapse would put thousands of Americans out of work and hurt consumers by reducing airline competition and increasing airfares. About 17,000 jobs could be impacted, according to a Spirit attorney. Budget-conscious and leisure travelers will likely feel Spirit's absence the most, especially in places where the airline has a big footprint, including Las Vegas and the Florida cities of Fort Lauderdale and Orlando.