The latest bleak news for the floundering budget airline arrives a week after President Donald Trump considered the possibility of a government-led intervention.
WASHINGTON — Spirit Airlines, known for its cheeky advertising campaigns and bargain-basement fares, declared on Saturday that it is shutting down after 34 years in operation.
The no-frills carrier, which once boasted a fleet of bright yellow planes and operated numerous daily flights, employing around 17,000 staff members, stated it has commenced an “orderly wind-down of our operations, effective immediately.”
According to a statement on the airline’s website, all flights have been canceled, and customer service has been discontinued.
“We take pride in the influence our ultra-low-cost model has had on the industry over the past 34 years and wished to continue serving our guests for many more,” the statement mentioned.
Customers were notified that while they could expect refunds, assistance with finding alternative flights on other airlines would not be provided.
The shutdown was expected after Friday came and went without a needed government bailout for the cash-strapped business.
President Donald Trump said Friday that his administration had given the budget carrier a “final proposal” for a taxpayer-funded takeover to keep it from going under, but a deal was not reached.
Trump floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years with jet fuel prices soaring because of the Iran war. About 17,000 jobs could be impacted by a shutdown, said Spirit lawyer Marshall Huebner.
Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had lost more than $2.5 billion since the start of 2020.
The budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion in debts and $8.6 billion in assets, according to court filings.
Supporters of a rescue including labor unions representing Spirit’s pilots, flight attendants and ramp workers said say a collapse would put thousands of Americans out of work and hurt consumers by reducing airline competition and increasing airfares.
Budget-conscious and leisure travelers would likely feel Spirit’s absence the most, especially in places where the airline has a big footprint such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando.
The carrier flew about 1.7 million domestic passengers in February, roughly half a million fewer than during the same month a year earlier, according to aviation analytics firm Cirium. Spirit also has sharply reduced its capacity, with about half as many seats available this month than in May 2024.
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