Spirit Airlines officially shuts down and cancels all flights after $500million rescue deal falls apart
SPIRIT Airlines has confirmed it has officially shut down after all last-minutes attempts to save the company fell through.
Donald Trump on Friday had said he had offered a final proposal for a federal bailout.
But a deal was not made after talks hit a wall over a $500million rescue package.
American, United and Frontier Airlines have all offered to support any passengers left stranded by the closure.
It comes after the airline filed for bankruptcy for a second time.
“It is with great disappointment that on May 2, 2026, Spirit Airlines started an orderly wind-down of our operations, effective immediately,” the airline said in a statement on Saturday.
“All Spirit flights have been cancelled, and Spirit Guests should not go to the airport.
“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, like many other airlines, has been plagued with skyrocketing fuel costs as the Iran war continues, with some carriers raising fares and increasing checked bag fees.
“Unfortunately, despite the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” it said.
Some other budget-friendly airlines have asked the government for help as they face jet fuel price spikes.
Spirit’s collapse just a day after it was still selling tickets to travelers has left thousands stranded as all flights have been canceled.
In addition to this, 17,000 workers are now out of work including 14,000 airline employees and thousands of contractors.
Passengers with Spirit tickets will be getting automatic refunds if they booked directly with the airline using a debit or credit card.
Those who have tickets from travel agents must “contact the travel agent directly to request a refund.”
The airline added that it will not be able to help passengers re-book their flights with another airline.
However, rival carriers have offered help, with JetBlue offering passengers $99 one-way fares for those who have proof of a Spirit itinerary for the same route of travel until May 6.
The airline has urged stranded passengers to call 1-800-JETBLUE for help getting where they need to go.
In addition to this, JetBlue has capped basic fares at $299 or less on certain non-stop routes.
Similar moves are being made by United, Delta, and Southewest, the Department of Transportation confirmed.
“The Trump Administration is committed to taking care of you and your family when you fly,” said US Transportation Secretary Sean Duffy.
“In a matter of hours, we’ve activated our airline partners to ensure passengers are not stranded, communities maintain route access, fares do not skyrocket, and Spirit’s workforce is connected to new job opportunities.”
The department has outlined the ways that it and fellow airlines are assisting those affected by Spirit’s collapse from capped and reduced fares to refund advice and employee support.
Duffy has largely blamed former President Joe Biden for the airline’s collapse.
This is because a proposed merger between Spirit and JetBlue was blocked under the Biden administration in 2024 which Duffy called “a massive mistake” in a press conference on Saturday morning.
He added that President Trump was “like a dog with a bone” trying to find a deal to keep Spirit afloat but noted that the airline “was in dire straights long before the war in Iran.”
And it’s not just Spirit struggling financially, with The Association of Value Airlines seeking $2.5billion in federal help to keep discount airlines like Breeze and Frontier running amid high fuel prices.
Duffy has already rejected this level of funding and in his press conference, accused low-budget airlines of trying to piggyback on the generosity the Trump administration showed to save Spirit in trying to save it.
