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Spirit Airlines shuts down, crushed by price of Iran war jet fuel
Spirit Airlines is shutting down with immediate effect in a move that will affect thousands of scheduled flights and nearly as many employees.The troubled budget carrier canceled all flights and announced an “orderly wind-down” of operations early Saturday.“To our Guests: all flights have been cancelled, and customer service is no longer available,” the company said in a statement.Spirit, which has struggled to maintain consistent profitability since the Covid-19 pandemic, had been looking to emerge from its second bankruptcy in less than a year. But those plans were derailed amid soaring jet fuel costs sparked by the outbreak of the war with Iran.Spirit Airlines aircraft in Las Vegas last year. While it only ever carried a small slice of the flying public, Spirit's profitability was, at one point, among the top three of major U.S. airlines.Kevin Carter / Getty Images file“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 company’s statement said. “With no additional funding available to the company, Spirit had no choice but to begin this wind-down.”Last month, Spirit approached the White House for financial assistance, and President Donald Trump initially appeared receptive. But
Trump administration lays groundwork for relief plan for Spirit Airlines customers, employees
Transportation Secretary Sean Duffy unveiled a relief plan for Spirit Airlines customers and employees following the airline’s shutdown early Saturday. Four major airlines — United, Delta, JetBlue and Southwest — will cap ticket prices for Spirit customers who need to rebook cancelled flights, and customers who can validate their purchase will be offered a one-way ticket costing around $200, he announced. American Airlines and Delta Air Lines will also be offering reduced fares on high-volume Spirit routes. Allegiant will freeze fare prices across routes that overlap with Spirit, and Frontier will be offering up to 50% off base fares across its network until May 10. “I would recommend that if you have a ticket with Spirit that you actually try to book with these airlines as soon as possible, these offers are not going to be open forever,” Mr. Duffy said. The now-defunct airline will automatically process refunds to travelers who paid with a credit or debit card, and they may request a “chargeback” from their card issuer for services not rendered or go through their travel insurance provider to see if the policy covers insolvency or service cessation. Travelers may also file a formal “proof of claim” with a
Spirit Airlines Shuts Down Due to Iran War Fuel Crisis. Other Low-Cost Airlines Could Be Next
The low-cost Spirit Airlines announced Saturday that it has officially gone out of business after years of financial hardship, citing rising fuel costs resulting from the Iran War as the final straw.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.Spirit Airlines was founded in 1983 as Charter One Airlines, a charter tour operator. It was rebranded as Spirit in 1992, becoming a passenger airline and a pioneer of low-cost air travel, offering pared-down services in exchange for cheap base fares. It flew around 30 million passengers in 2025, reflecting a sharp drop from a peak of over 44 million in 2023 and 2024, according to 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
Trump made 'significant effort' to avoid Spirit Airlines shutdown
Updated May 2, 2026, 1:48 p.m. ETThe Trump administration made "a significant effort" to find a way to prevent Spirit Airlines' shutdown on Saturday, but couldn't pull it off, Transportation Secretary Sean Duffy said."There was a number of ideas being floated on how the government could step in and be helpful to Spirit Airlines," Duffy said Saturday, May 2, in a news conference at Newark Liberty International Airport. "The president was like a dog on a bone trying to figure out a way to keep Spirit afloat."Talks had been ongoing about a possible $500 million bailout for the low-cost airline. Trump was concerned about Spirit Airlines employees and its customers, Duffy said."In the end, this was a creditor issue," Duffy said. "They have the final say of whether they want to do a deal with the government, but also from the government's perspective, we oftentimes don't have a half a billion dollars laying around in a spare account that we can put into a bailout of an airline. So, there was creative thinking on how it could happen. … In the end, a deal couldn't be reached."Transportation secretary says Spirit Airlines had been in 'dire straits'Low-cost airlines had approached the
Duffy blames Biden-Buttigieg team for Spirit Airlines collapse after blocked merger
NEWYou can now listen to Fox News articles! Transportation Secretary Sean Duffy said Sunday that the collapse of Spirit Airlines followed former President Joe Biden's administration’s decision, alongside former Transportation Secretary Pete Buttigieg and the U.S. Department of Justice, to block a proposed merger with JetBlue, after the airline ceased operations early Saturday morning and entered liquidation."The Joe Biden-Pete Buttigieg administration and DOJ tanked that deal," Duffy said on ABC’s "This Week." "Immediately after that, they filed for bankruptcy."Duffy’s remarks came as Spirit halted all flights at approximately 3 a.m. Saturday, closed call centers and ticket counters and began what he described as an "orderly liquidation process," while federal officials and airlines moved to assist affected passengers.Duffy said the shutdown left no operational support for travelers. Transportation Secretary Sean Duffy says Spirit Airlines’ shutdown traces back to Washington blocking its last shot at survival, leaving planes grounded and passengers scrambling. (Yuki Iwamura/AP Photo)BUDGET AIRLINE BLASTED IN VIRAL VIDEO AS ‘PERFECT HONEYMOON WEEK’ ENDS IN TRAVEL CHAOS"Spirit does not have airplanes in the air flying as of this morning," Duffy said. "If you have a flight scheduled with Spirit Airlines, don't show up at the airport. There will be no one
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