Sources indicate that Spirit Airlines is poised to announce an immediate cessation of flights starting at 3 AM Eastern Time on Saturday, marking the first shuttering of a major US carrier in nearly a quarter-century.
The shutdown comes amid rocketing jet fuel costs, which sank its plans to emerge from its second bankruptcy proceeding. Last-minute efforts on Friday to finalize a bailout agreement with the Trump administration—one acceptable to a crucial group of creditors—failed to materialize.
This decision means millions of passengers holding Spirit tickets will need to scramble for alternative arrangements in the coming months, and it will leave 17,000 Spirit employees jobless. The airline’s grounding is also expected to push fares up across the entire US aviation sector.
As of midnight Eastern Time on Friday, the airline had yet to issue a statement confirming the shutdown plans.
Spirit’s counsel informed the bankruptcy court just last week that the airline was engaged in “very advanced discussions” with the administration regarding a rescue package.
Nevertheless, a key creditor bloc did not endorse this proposal, according to an insider familiar with the negotiations. These creditors rejected a plan that reportedly would have ceded control of the vast majority of the airline’s stock to the government.
Earlier on Friday, President Donald Trump appeared to back away from his previous endorsement of a government rescue package for the carrier, or perhaps even a government takeover.
“We’re looking at it—but if we can’t make a good deal, no institution could have done it,” Trump stated Friday. “I would like to save the jobs, but we’re going to have an announcement today. We gave them, we gave them a final offer.”
Fuel Surge Delivered the Final Blow
All carriers are grappling with escalating jet fuel expenses, which have nearly doubled since the war in Iran began. Jet fuel represents the second-highest expense for airlines, second only to labor costs.
To counteract this, airlines have been hiking base fares and increasing ancillary fees, such as those for checked luggage. However, intense competition for travelers has prevented them from passing on the full burden to customers. Discount operators like Spirit, dependent on deal-seeking clientele, find it harder to raise ticket prices.
Spirit has approximately 9,000 flights scheduled between May 2nd and the end of the month, carrying 1.8 million seats, according to aviation analysis firm Cirium. This translates to an average of about 300 flights and 60,000 potentially affected passengers per day over the next month alone.
What Happens to Travelers?
Passengers with upcoming Spirit flights should be able to secure refunds by appealing to the issuer of the credit or debit card used for the purchase. However, those who paid with cash are now considered unsecured creditors of Spirit. This means they must wait for reimbursement alongside everyone else owed money by the company.
As of 1 AM Eastern Time Saturday, there was still no word from the airline regarding the closure decision. Its website still allowed customers to search for and book tickets. However, employees had begun receiving notification of job loss. Leadership from the Spirit Flight Attendants Association sent a message to the union’s 5,000 members at the airline around 1 AM, stating, “We are delivering the hardest news of our lives, that Spirit will cease all operations permanently at 3:00 AM EST on May 2nd.”
For passengers currently mid-itinerary, securing passage on another airline is now paramount. Last-minute, “rescue” fares are notoriously the most expensive in the industry.
Although Trump had expressed support last week, the prospect of bailing out a single airline drew backlash from both the aviation sector and Republican members of Congress.
Spirit ranked eighth among US airlines in terms of offered seats in 2025. The carrier pioneered the ultra-low base fare model in the US, charging extra for items like carry-on baggage. This approach drove down fares even for passengers on other airlines and prompted major carriers to introduce their own “basic economy” options.
Industry-wide fares have climbed this year due to the dramatic spike in jet fuel prices. Removing the 2% of domestic US flights Spirit was slated to operate this summer will likely lead to further upward pressure on tariffs.
Losses Mount After Years of Struggles
Spirit, nevertheless, turned unprofitable after tourism plummeted following the onset of the Covid pandemic, having repeatedly warned in recent years about “substantial doubt” concerning its viability. Spirit had filed for bankruptcy twice before, most recently in August 2025.
In February, Spirit announced it had reached an agreement with creditors to exit that bankruptcy with reduced debt and the ability to continue flying. But three days later, the war in Iran erupted, cutting off roughly 20% of global oil supply and sending jet fuel prices soaring.
Bankruptcies are common in the aviation sector, which is a capital-intensive business. Companies face massive expenditures for aircraft and labor, alongside sharp volatility in fuel prices and travel demand. Even in prosperous times, airlines often operate on razor-thin margins. Eight major US airlines have declared bankruptcy over the past 25 years.
In many instances, bankrupt carriers are acquired by solvent rivals, leading to widespread industry consolidation. Four major carriers—United, American, Delta, and Southwest—now command roughly 80% of available passenger flights.
A full airline shutdown, however, is far rarer. Spirit’s closure marks the first shutdown of a major US airline since Midway Airlines ceased operations immediately following the September 11, 2001, attacks.
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