The company said it had undergone “extensive and comprehensive efforts to restructure the business” following two bankruptcy filings in 2024 and 2025, but added that the “sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative.”
The airline informed customers that all flights had been canceled, and that refunds were being processed, but that they should look to rebook flights with other providers.
President Donald Trump and his Administration floated a potential $500 million federal bailout for the Florida-based airline, but bondholders could not reach an agreement on how to restructure and ultimately save the company with the funds.
Dave Davis, Spirit’s President and Chief Executive Officer, cited “the sudden and sustained rise in fuel prices in recent weeks” as the reason for the company’s closure.
According to J.P. Morgan analysts cited by the Wall Street Journal, if fuel prices remained elevated, Spirit’s costs would have risen by $360 million by the end of the year.
Transportation Secretary Sean Duffy disputed that Spirit’s closure could be pinned on the Iran war in a news conference Saturday.
Duffy instead blamed the Biden Administration and former Transportation Secretary Pete Buttigieg for Spirit’s closure after the Justice Department sued to block a 2023 potential merger between it and larger competitor JetBlue. Biden’s Justice Department said the merger would cause tens of millions of travelers to face higher fares and fewer choices.
Trump’s attempts to salvage
He told CNBC’s Squawk Box in April that he would “love somebody to buy Spirit, it’s 14,000 jobs,” and that “maybe the federal government should help that one out.”
“The government doesn’t know a damn thing about running a failed budget airline,” Senate Republican Sen. Ted Cruz said on X in April.
In a statement on Saturday, Duffy and the Transportation Department said that other airlines are capping ticket prices for Spirit customers looking to rebook their flights.
Are other low-cost airlines under threat?
The crisis has impacted practically every airline and air traveler, raising prices and creating travel uncertainty.
Read More: What You Can Do If Your Flight Is Canceled Amid the Jet Fuel Crisis
Meanwhile, Ryanair, Europe's largest airline, said it is considering reducing routes, along with smaller airlines in Europe and Asia like Vietnam Airlines, AirAsia, and Scandinavian Airlines—all citing rising jet fuel costs.
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