Spirit Airlines has cancelled all flights and started an orderly wind-down of operations after failing to secure a government bailout. The airline’s collapse is attributed to a doubling in jet fuel prices during the Iran war. Spirit Airlines had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats.
Key financial facts:
- Spirit Airlines declared bankruptcy in November 2024.
- The airline filed for bankruptcy protection a second time in August 2025.
- By August 2025, Spirit Airlines accumulated about $7.4 billion in debt.
- Jet fuel prices climbed to about $4.51 a gallon by the end of April 2026.
The Trump administration proposed a $500 million financing package to help Spirit Airlines. However, these efforts were unsuccessful, leading to its shutdown. Transportation Secretary Sean Duffy stated that reserve funds had been set up to refund customers who bought directly from Spirit Airlines.
At one point, Spirit Airlines accounted for 5 percent of US flights. No US carrier of Spirit’s size has liquidated in two decades. A creditor close to the deal remarked, “The Trump administration made an extraordinary effort to try and save Spirit, but you can’t breathe life into a corpse.”
