Spirit Airlines has cancelled all flights and begun an immediate shutdown of operations after failing to secure a $500 million government-backed rescue, marking a rare collapse of a major US carrier.
The airline announced an “orderly wind-down of operations” early Saturday, instructing passengers not to go to airports as all services ceased.
The sudden closure follows weeks of negotiations with the White House and creditors that ultimately broke down amid worsening financial pressures.
The collapse is expected to cost thousands of jobs and disrupt hundreds of thousands of scheduled passenger journeys.
The airline’s demise comes as jet fuel prices surged בעקבות the ongoing Iran war, doubling in recent months and severely impacting operating costs.
Spirit had projected fuel prices at just over $2 per gallon in coming years, but by late April costs had climbed to about $4.51 per gallon, undermining its restructuring plans.
The company had been working to exit its second bankruptcy and had secured preliminary agreements with lenders before the fuel spike derailed those efforts.
An airline analyst described the rising fuel costs as “the final nail in the coffin” for the carrier.
Fuel expenses can account for up to 40 percent of airline operating costs, leaving budget carriers particularly exposed to sudden price shocks.
The crisis has affected airlines globally, with several raising fares or cutting routes to manage escalating expenses.
Efforts by the Trump administration to arrange a bailout ultimately failed, despite a final proposal aimed at keeping the airline operational during bankruptcy.
President Donald Trump said, “If we could do it, we’d do it, but only if it’s a good deal.”
Transportation Secretary Sean Duffy said attempts to find buyers for the airline were unsuccessful, questioning its viability without external support.
Spirit accounted for roughly 5 percent of US flights at its peak, and its disappearance removes a key low-cost competitor from the market.
Passengers have been left scrambling, with some learning of cancellations only upon arriving at airports.
Authorities said refunds would be processed for direct bookings, while other airlines have offered discounted replacement fares to affected travelers.