US carrier Spirit Airlines, known for low fares, has cancelled all flights as it began an “orderly wind-down of operations.” The airline said in a statement that the company has started an orderly wind-down, effective immediately, and that all Spirit flights have been cancelled; Spirit guests were advised not to go to the airport.
Customers holding Spirit tickets are entitled to full refunds if the airline goes out of business. The carrier will automatically process refunds for flights purchased with a credit or debit card. Following the shutdown announcement, major US carriers introduced rescue-fare options to help affected passengers.
Industry reports call Spirit the first US carrier casualty linked to the Iran war after it failed to secure creditor support for a proposed US government bailout. A spike in jet fuel prices during the two-month-old conflict doubled fuel costs, undermining Spirit’s cost forecasts and derailing plans to emerge from its second bankruptcy by late spring or early summer.
Spirit had reached a deal with lenders that would have supported its bankruptcy exit, but the war-related fuel-price surge complicated those arrangements. The collapse threatens thousands of jobs and marks a setback for efforts to keep fares competitive in markets where Spirit competed with major carriers.
The developments were a political blow to President Donald Trump, who had proposed $500 million to rescue Spirit despite opposition from some advisers and many Republicans in Congress. No US carrier of Spirit’s size—at one point operating about 5% of US flights—has liquidated in two decades.
