Spirit Airlines says it has “initiated an orderly winddown of our operations, effective immediately” while the outcome of talks between the airline and the federal government over a $500 million bailout remains unclear.
Spirit Airlines’ last flight was Flight 1833, which traveled from Detroit to Dallas and landed early Saturday morning just after midnight. The airline says it has transported more than 50,000 passengers over the past day and is working to return more than 1,300 crew members safely to their bases.
FILE – A Spirit Airlines Airbus 319 approaches Manchester Boston Regional Airport for landing, June 2, 2023, in Manchester, New Hampshire.
(AP Photo/Charles Krupa, File)
A Spirit spokesperson also said that the majority of the airline’s employees found out about the company’s closure primarily through media reports that they were about to lose their jobs.
The airline was scheduled to operate 277 flights on Saturday, according to Airline Data Inc, all of which have now been cancelled.
“To our guests: All flights have been canceled, and customer service is no longer available,” Spirit said in a statement on its website. “We are proud of the impact our ultra-low-cost model has had on the industry over the past 34 years and hoped to serve our guests for many years to come.”
The Wall Street Journal first reported that Spirit was preparing to shut down operations early Saturday.
Earlier on Friday, President Donald Trump said an announcement of an airline rescue deal was possible.
When asked if the administration had decided not to bail out Spirit Airlines, Trump told reporters on Friday: “I think we’re looking at it. If we can do it, we will do it, but only if it’s a good deal.”
He continued: “No institution has been able to do this.” “I said, ‘I’d like to save the jobs, but we’ll have an announcement sometime today. We’ve given them, we’ve given them a final proposal.’
ABC News has reached out to the White House for additional comment.
A Spirit Airlines spokesman declined to comment on the ongoing discussions.
“Spirit is business as usual,” the spokesperson said in a statement earlier Friday.
Other airlines responded to the news, saying they would be ready to help stranded passengers if Spirit were to close.
American Airlines told ABC News it will introduce price caps on main cabin tickets for the routes it shares with Spirit.
Likewise, United Airlines said it is “preparing to support Spirit customers in the event of a shutdown.”
“We stand ready to support customers who may be impacted if Spirit Airlines suspends operations, with a focus on helping people continue their travel plans with low-cost options,” Frontier Airlines posted Friday on X.
ABC News previously reported that Spirit could run out of the money it needs to continue operating within days, not weeks, according to sources familiar with the matter.
Spirit filed for bankruptcy for a second time last August — having previously filed for Chapter 11 bankruptcy protection in November 2024 — to restructure financially and “reduce its cost structure,” with hopes of emerging from Chapter 11 by the spring or summer of 2026.
Rising jet fuel prices amid the ongoing war in Iran have had a widespread impact on airlines, and travel expert Katie Nastro, of the flight monitoring site Going, previously told ABC News that Spirit may be out of time to try to turn things around.
“Filing for bankruptcy is never a good sign, but filing for bankruptcy again within six months could be even worse,” Nastro said. “Spirit has indicated that they will be able to emerge from bankruptcy this time by the spring. We are in the spring now, and we have higher prices for jet fuel — and that is a recipe for disaster for them.”
What travelers need to know about Spirit Airlines’ closure
Bradley Akupuero, a crisis expert and former Boeing spokesman, told ABC News that the loss of a budget airline like Spirit would lead to higher minimum flight prices.
“Frontier, Allegiant and Breeze were still flying, but Spirit was the largest, and in the markets it dominated — Fort Lauderdale, Orlando, much of the Caribbean — no other airline was ready to refill at the same price tomorrow.” “The pain isn’t immediate. It’s structural. A price that was $89 is $140 six months from now, and most consumers won’t associate the two.”
When airlines go into liquidation, they immediately cease operations without warning, meaning passengers will be stranded and employees will not come to work.
Spirit Airlines is asking travelers not to go to an airport where all flights have been canceled and that it will automatically issue refunds for any flights purchased through Spirit using a credit or debit card to the original payment method. The airline said guests who booked flights through a travel agent should contact the travel agent directly to request a refund.
Reimbursement for people who booked flights using any other methods, including voucher, credit or Free Spirit points, will be determined later through the bankruptcy process, the airline said.
“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,” the airline said in its statement. “With no additional financing available for the company, Spirit had no choice but to initiate this liquidation process.”
There is generally no assistance from airlines when it comes to helping stranded passengers after an airline shuts down operations.
For any ticketed passengers who are scheduled to fly on Spirit or are already in the middle of their trip, here are some tips from travel experts on how to handle the situation.
Nastro advised against canceling your trip right away, adding that travelers who cancel lose their right to a refund. And be sure to keep all records and receipts.
If you booked using a credit card, you can dispute the charge with your credit card company and potentially get a refund.
There’s less protection if you book with a debit card, but you can still contact your company to see if you can get reimbursed.
If you have travel insurance, I reminded customers to read the fine print as not all of them cover this type of scenario.
According to the Department of Transportation, customers can consider filing a proof of claim in bankruptcy proceedings to try to get a partial refund, but the claim will be considered along with all other creditors to whom the airline owes money, and you may only get a small portion of your money back.
If you’re stranded, check options with other airlines that may be able to offer relief flights, maximum fares or emergency fares, as you would after a major weather event.
— ABC News’ Clara McMichael contributed to this report.
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