- Spirit Airlines ceased operations after financial troubles and a surge in fuel prices.
- The airline canceled all flights and is processing refunds for affected passengers.
- Spirit’s CEO cited a lack of liquidity and rising fuel costs as reasons for shutdown.
US low-cost carrier Spirit Airlines has ceased operations after prolonged financial troubles, with a recent surge in fuel prices adding to its collapse.
The airline said it had made “extensive and comprehensive efforts to restructure the business” following two bankruptcy filings in 2024 and 2025, but the “sudden and sustained rise in fuel prices in recent weeks” left it with “no alternative.”
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All flights have been cancelled, with refunds underway and passengers advised to rebook with other carriers.
Spirit's President and CEO Dave Davis said, “Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure,” calling the outcome “tremendously disappointing.”
While the airline linked its shutdown partly to the ongoing Iran conflict and rising jet fuel costs, US Transportation Secretary Sean Duffy rejected that explanation. “Spirit was in dire straits long before the war with Iran… Their model wasn't working,” he said, adding, “The war was not the impetus for Spirit.”
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Analysts estimate that elevated fuel prices could have added up to $360 million in costs this year alone. Spirit had also struggled against larger rivals offering competitive fares bundled with loyalty perks and partnerships.
A proposed government-backed rescue under President Donald Trump failed to materialize amid political opposition and disagreements with bondholders.
The broader aviation sector is now under pressure, with fuel prices rising sharply and smaller carriers globally reviewing routes, scaling back operations, or facing similar financial stress.
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