Spirit Airlines said it has begun an orderly wind-down of operations, effectively bringing an end to the ultra-low-cost carrier after 34 years in business. The company said all flights have been canceled and told passengers not to go to the airport.
Final flight and immediate shutdown
According to ABC7 Chicago, the airline’s final flight was Flight 1833 from Detroit to Dallas, which landed shortly after midnight early Saturday. Spirit had been scheduled to operate 277 flights that day, but all of them were canceled. The airline also said it had flown more than 50,000 passengers over the previous day and was working to return more than 1,300 crew members safely to their bases.
Failed rescue deal and federal bailout talks
CBS News reported that Spirit ceased operations after failing to secure a $500 million federal bailout. The same report said the proposed rescue would have given the U.S. government a 90% stake in the airline, but no final deal was reached. Transportation Secretary Sean Duffy said a creditor issue ultimately blocked the rescue, while President Donald Trump said a day earlier that an announcement on the airline was possible. 
Airline blames fuel costs, officials point to deeper issues
In statements cited by both ABC and CBS, Spirit said a sudden and sustained rise in fuel costs, along with other business pressures, severely damaged its financial outlook and left it with no alternative but to begin winding down. Duffy, however, said Spirit had been in serious trouble long before the war with Iran and argued that the airline’s low-cost model was no longer working.
Two bankruptcies and years of losses
CBS News reported that Spirit lost more than $2.5 billion from the start of 2020 until its first bankruptcy filing in November 2024. The airline filed for bankruptcy again in August 2025 and disclosed that there was substantial doubt about its ability to continue operating. ABC7 added that Spirit had reached a restructuring agreement with bondholders in March 2026, but that plan ultimately failed to keep the company alive as a going concern.
What passengers need to know now
Spirit said it will automatically issue refunds for flights purchased directly through the airline with a credit or debit card. Travelers who booked through a travel agent were told to contact their point of purchase. ABC7 also reported that compensation for tickets purchased with vouchers, credits, or Free Spirit points will be handled later through the bankruptcy process. The airline also said customer service is no longer available.
Broader impact on fares and workers
ABC7 reported that Spirit’s disappearance could raise the floor on airfare, especially in markets where the carrier had a strong presence, such as Fort Lauderdale, Orlando, and parts of the Caribbean. CBS News added that Spirit ended 2025 with about 7,500 employees, including 2,000 pilots and 3,000 flight attendants, after already cutting nearly 4,000 jobs and 200 underperforming routes during 2025.
