Spirit Airlines says it’s going out of business after 34 years and is
ending operations immediately
[May 02, 2026] By
AAMER MADHANI
WEST PALM BEACH, Fla. (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 ultra-low 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.”
The airline said on its website that all flights have been canceled and
customer service is no longer available.
“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 there
would be no help in booking travel on other airlines.
The shutdown was expected after Friday came and went without a needed
government bailout for the cash-strapped business.
President Donald Trump said Friday that his administration had given the
budget carrier a “final proposal” for a taxpayer-funded takeover to keep
it from going under, but a deal was not reached.
Trump 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. About 17,000
jobs could be impacted by a shutdown, Spirit lawyer Marshall Huebner
said.
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A Spirit Airlines 319 Airbus approaches Manchester Boston Regional
Airport for a landing, June 2, 2023, in Manchester, N.H. (AP
Photo/Charles Krupa, File)
 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.
Supporters of a rescue including labor unions representing Spirit’s
pilots, flight attendants and ramp workers said say 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 Spirit lawyer Marshall Huebner.
Budget-conscious and leisure travelers would likely feel Spirit’s
absence the most, especially in places where the airline has a big
footprint such as Las Vegas and the Florida cities of Fort
Lauderdale and Orlando.
The carrier flew about 1.7 million domestic passengers in February,
roughly half a million fewer than during the same month a year
earlier, according to aviation analytics firm Cirium. Spirit also
has sharply reduced its capacity, with about half as many seats
available this month than in May 2024.
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