Spirit Airlines, a low-cost U.S. carrier, has cancelled all flights and begun an “orderly wind-down of operations,” warning customers not to go to the airport. The parent company said the move is effective immediately and that all Spirit flights have been cancelled.
Passengers holding tickets for future Spirit flights are entitled to full refunds if the airline ceases operations. Media reports say refunds for purchases made directly with Spirit using a credit or debit card will be processed automatically by the carrier. In response to the shutdown, several major U.S. airlines introduced rescue fares and rebooking options to help displaced travelers reach their destinations.
Industry observers have linked Spirit’s collapse to the ongoing conflict with Iran, calling it possibly the first U.S. carrier casualty tied to the war. Spirit had been pursuing creditor support and a government rescue to exit its second bankruptcy, but lenders withdrew backing after jet fuel prices roughly doubled over the course of the two-month conflict. The spike in fuel costs undermined the carrier’s financial forecasts and derailed its planned emergence from bankruptcy.
The abrupt failure to secure a rescue also represents a political setback for President Donald Trump, who had proposed a $500 million aid package for Spirit despite opposition from some advisers and many congressional Republicans. No U.S. airline of Spirit’s size—at its peak responsible for about 5% of U.S. flights—has liquidated in roughly two decades.
The collapse threatens thousands of jobs and removes a low-cost competitor that helped keep fares lower on routes where it operated. Regulators, passengers, and industry participants will be watching how refunds, redeployments, and the broader market fallout are managed in the coming days.