Spirit Airlines has started an orderly wind-down of its operations with immediate effect after failing to secure a funding lifeline, the carrier said early Saturday.
"All flights have been cancelled, and customer service is no longer available," the airline said in a notice to customers, adding that its booking platform had been replaced with guidance on refunds and next steps. Spirit had faced pressure from higher fuel costs, rising expenses and shifts in travel demand. It had also planned to exit bankruptcy this year before the increase in oil prices weakened its position.
The shutdown follows the breakdown of talks with lenders and the US government over a proposed rescue package, leaving the airline without fresh capital to continue operations.
Spirit said it had no option but to cease operations after funding efforts failed.
"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.
"With no additional funding available to the Company, Spirit had no choice but to begin this wind-down," it added.
The airline asked passengers not to go to airports and directed them to online resources for information on refunds and baggage claims. The closure marks the end of operations for a US budget carrier that operated for more than three decades and helped shape the low-fare model.
"We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our Guests for many years to come," the airline said.
Bailout Talks
Discussions with the US government and creditors over a rescue package did not result in an agreement.
The Trump administration had proposed a loan of up to $500 million in exchange for a significant equity stake, but negotiations with bondholders stalled. "I would say we're driving a tough deal, but it's one of those things we will do it, or we won't," President Donald Trump said on Friday. "Seems like the other lenders are blocking. They think they'll get bumped down in priority."
"We come first," he added.
Path Ahead
Spirit said it will process refunds automatically for eligible bookings made by card and will communicate with vendors during the wind-down.
"We are committed to working with our vendors through the wind-down process and will be in touch in the coming days to discuss next steps," the airline said.
It added that any outstanding claims would be handled through bankruptcy proceedings, with further communication to follow through the courts.
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