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Spirit Airlines has announced an immediate and systematic shutdown of its operations amidst ongoing negotiations with the federal government regarding a potential $500 million bailout. The outcome of these discussions remains uncertain, casting a shadow over the airline’s future.
The final chapter for Spirit Airlines was marked by flight 1833, which journeyed from Detroit to Dallas, touching down shortly after midnight on Saturday. The airline reported having transported over 50,000 passengers in the past 24 hours and is now focused on safely returning more than 1,300 crew members to their home bases.
In a surprising turn, many of Spirit’s employees learned about the company’s closure predominantly through media reports, leading to an abrupt realization that their jobs were at risk.
According to Airline Data Inc, Spirit Airlines had 277 flights slated for Saturday, all of which have since been canceled in light of the company’s shutdown.
Spirit communicated directly to its customers via a statement on their website, informing them of the cessation of all flights and the unavailability of customer service. The airline reflected on its legacy, expressing pride in its impact on the industry with its ultra-low-cost model over the past 34 years, and lamented the end of its service to guests.
The initial report of Spirit’s operational halt was broken by The Wall Street Journal early on Saturday, bringing to light the latest developments in this unfolding story.
Earlier Friday, President Donald Trump said an announcement about the airline rescue deal was possible.
When asked if the administration had decided against bailing out Spirit Airlines, Trump told reporters on Friday, “I guess we’re looking at it. If we could do it, we do it, but only if it’s a good deal.”
“No institution’s been able to do it,” he continued. “I said ‘I’d like to save the jobs,’ but we’ll have an announcement sometime today. We gave them, we gave them a final proposal.”
ABC News has reached out to the White House for additional comment.
A spokesperson for Spirit Airlines declined to comment on ongoing discussions.
“Spirit is operating as usual,” the spokesperson said in a statement earlier Friday.
Other airlines have responded to the news, saying they will be ready to help stranded passengers in the event that Spirit shuts down.
American Airlines told ABC News it will offer fare caps on main cabin tickets for routes they share with Spirit.
Similarly, United Airlines said they’re “preparing to support Spirit customers in the event of a shut down.”
“We are ready to support customers who may be impacted if Spirit Airlines ceases operations, with a focus on helping people continue their travel plans with low-fare options,” Frontier Airlines posted Friday on X.
ABC News previously reported that Spirit could run out of the cash it needs to keep operating within days, not weeks, according to sources familiar with the matter.
Spirit filed for bankruptcy for the 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.
The soaring price of jet fuel amid the ongoing war in Iran has had widespread impact on airlines and travel expert Katy Nastro, of airfare monitoring site Going, previously told ABC News that Spirit could be out of time to try and turn things around.
“It’s never a good sign to file bankruptcy to begin with, but a second within six months, even worse,” Nastro said. “Spirit suggested that they were going to be able to come out of bankruptcy this time by the spring. We’re in the spring now, we have higher jet fuel prices — this is a recipe for disaster for them.”
What travelers need to know about Spirit Airlines shutting down
Bradley Akubuiro, a crisis expert and former Boeing spokesperson, told ABC News that losing a budget airline like Spirit will raise the floor on airfares.
“Frontier, Allegiant, and Breeze are still flying, but Spirit was the biggest, and in the markets it dominated — Fort Lauderdale, Orlando, a lot of the Caribbean — there isn’t another carrier ready to backfill at the same price tomorrow,” he explained. “The pain isn’t immediate. It’s structural. A fare that used to be $89 is $140 six months from now, and most consumers won’t connect the two.”
When airlines liquidate, they immediately cease operations without notice, which means that passengers will be stranded and employees will not show up to work.
Spirit Airlines is telling travelers to not go to the airport as all flights have been cancelled and that they will automatically issue refunds for any flights purchased through Spirit with a credit or debit card to the original form of payment. The airline said that guests who booked flights via a travel agent should contact the travel agent directly to request a refund.
Compensation for people who booked flights using any other methods, including a voucher, credit or Free Spirit points, will be determined at a later date 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 funding available to the Company, Spirit had no choice but to begin this wind-down.”
There is generally no airline assistance when it comes to helping stranded passengers after an airline shuts down operations.
For any ticketed passengers scheduled to fly Spirit or already in the middle of their trip, below are some tips from travel experts on how to navigate the situation.
Don’t immediately cancel your flight, Nastro advised, adding that travelers who cancel forfeit their right to a refund. And make sure to keep all records and receipts.
If you booked with a credit card, you can dispute the charge with your credit card company and likely get the money back.
There is less protection if you booked with a debit card, but you can still contact your company to see if you can get reimbursed.
If you have travel insurance, she reminded customers to read the fine print as not all of them cover this type of scenario.
Per the Department of Transportation, customers could consider filing a proof of claim in the bankruptcy proceeding to try and get a partial refund, but the claim will be considered along with all the other creditors that the airline owes money to and you may only get a small portion of your money back.
If you’re stranded, check options with other airlines that might be able to offer relief flights, fare caps or emergency fares, like they would do after a big weather event.
-ABC News’ Clara McMichael contributed to this report.
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