Spirit Airlines Ceases Operations After 34 Years
- Portland Observer
- 4 hours ago
- 3 min read
Rising oil prices bring down the ultra-low-cost carrier
(AP) — 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 ultralow cost airline that once operated hundreds of daily flights on its bright yellow planes and employed about 17,000 people said it had “started an orderly wind-down of our operations, effective immediately.”
Although Spirit had gone bankrupt twice before, the company said high oil prices, which have been rising because of the war with Iran, made it impossible to stay aloft.
The airline said on its website that all flights have been canceled and customer service is no longer available. Some passengers arrived Saturday for flights and were stunned to find them canceled, while workers learned overnight they were out of jobs.
“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,” Spirit’s announcement said.
U.S. Transportation Secretary Sean Duffy said Saturday that Spirit had a reserve fund set up for customers who bought directly from the airline to get refunds. People who bought from third-party vendors like travel agents would have to seek refunds from them.
Duffy said United, Delta, JetBlue and Southwest were offering $200 one-way flights for people who had Spirit confirmation numbers and proof of purchase for a limited time. Other airlines would also help Spirit employees who might be stranded, as well as offering them a preferential application process as they look for work.
Spirit said in a statement it was working to get more than 1,300 crew to their home bases and that the final Spirit flight landed at Dallas Fort Worth International Airport from Detroit Metropolitan Airport.
The company advised customers that they could expect refunds but there would be no help in booking travel on other airlines.
The Trump administration had considered a government bailout for the cash-strapped business to keep it from going under, but a deal was not reached. Of the potential bailout, Duffy said Saturday “we often times don’t have half a billion dollars laying around.”
President Donald 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 with jet fuel prices soaring because of the Iran war.
Five Spirit flights were still showing as “on time” on Saturday morning on the departure board in Atlanta. A trickle of passengers who hadn’t heard the news were still showing up.
“What!?” exclaimed Taylor Nantang as she, her husband and four children arrived for a Saturday afternoon Spirit flight from Atlanta to Miami for a spur-of-the-moment vacation. The family had driven down from Tennessee to the Atlanta airport.
“So the whole airline at every airport is out of business?” asked Nantang. “Oh my, that’s crazy.”
Other passengers wondered whether the airline would still answer its customer service phone, or when the refunds for canceled flights might arrive on their credit cards.
Former Spirit flight attendant Freddy Peterson was on a Spirit flight from Detroit that arrived in Newark around 11 p.m. Friday. He said that despite rumors flying on social media Friday, things seemed kind of normal, with more than 200 passengers on the plane.
“All our aircraft were packed,” he said.
Peterson, 60, said he set his alarm clock for 3 a.m. Saturday to check the company website at the hour of the rumored shutdown and learned all Spirit flights were canceled. He said Delta Air Lines brought him and another flight attendant back to Atlanta on Saturday morning, with Peterson leaving from there to drive to his home in Shellman in southwest Georgia.
As late as Friday afternoon, Trump had said his administration was looking at a bailout for Spirit and had given the budget carrier a “final proposal” for a taxpayer-funded takeover
Spirit proudly disrupted the penny-pinching portion of the airlines industry with its no-frills, low-cost flights and provocative ads like its “Check Out the Oil on Our Beaches” campaign after the Deepwater Horizon disaster in 2010, referencing suntan oil, but alluding to the crude spilled on t However, 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, Spirit 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 debts and $8.6 billion in assets, according to court filings.