Spirit Airlines began an “orderly wind-down” of its operations on Saturday after weeks of last-minute talks to save the budget airline failed to materialize. The ultra-low-cost carrier, which operated for 34 years and was known for its bright yellow aircraft and low base fares supplemented by fees for services such as seat selection and carry-on bags, canceled all flights and ceased customer service functions.

“It is with great disappointment that on May 2, 2026, Spirit Airlines started an orderly wind-down of our operations, effective immediately. To our Guests: all flights have been canceled, and customer service is no longer available,” the company said in an official statement. “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 company added that “the sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the Company,” citing extensive prior efforts to restructure amid financial pressures.

The shutdown follows years of financial challenges for Spirit, including two bankruptcy filings since 2024, more than $2.5 billion in cumulative losses since the COVID-19 pandemic, heavy debt, an engine defect that grounded aircraft, and stiff competition. A proposed $500 million federal bailout from the Trump administration, which would have involved government warrants for up to 90 percent equity, failed to materialize after disagreements with bondholders and internal administration discussions.

Negotiations collapsed in part due to creditor opposition and a recent spike in jet fuel prices caused by the Iran conflict.

The carrier employed approximately 17,000 people and operated hundreds of daily flights serving major U.S. cities as well as destinations in Latin America and the Caribbean. Its closure immediately affects scheduled operations, with no aircraft in the air after approximately 3 a.m. Eastern Time on Saturday, May 2.

U.S. Transportation Secretary Sean Duffy addressed the situation in a statement and press briefing.

“This morning at 3 a.m., Spirit Airlines ceased operations. So what that means is Spirit does not have airplanes in the air flying as of this morning. Also, their call centers are closed, and they don’t have staff at ticket counters. So if you have a flight scheduled with Spirit Airlines, don’t show up at the airport. There will be no one here to assist you,” he said.

“Yet another mess the traveling public has to inherit thanks to the radical policies of Joe Biden and Pete Buttigieg. In blocking the Jetblue/Spirit merger in 2024, they turned their backs on the American consumer and our great aviation workforce. Regardless of how we got here, the Trump Administration is committed to taking care of you and your family when you fly,” the secretary added. “In a matter of hours, we’ve activated our airline partners to ensure passengers are not stranded, communities maintain route access, fares do not skyrocket, and Spirit’s workforce is connected to new job opportunities.”

To support affected passengers, the Department of Transportation coordinated with major U.S. carriers, a number of whom agreed to cap or reduce fares for Spirit ticket holders who provide proof of a canceled Spirit booking, such as a confirmation number. Examples include one-way fares around $200 on select routes, with availability windows ranging from 72 hours to two weeks depending on the carrier. Some offered reduced base fares or froze prices on overlapping routes.

For individuals holding existing Spirit tickets, the airline indicated it will automatically process refunds for purchases made directly with credit or debit cards to the original form of payment. Reimbursements for tickets purchased with loyalty points, vouchers, or credits will be addressed later through the bankruptcy process, the company added.

Spirit employees will receive support including travel benefits and jump seats from partner carriers to return home, as well as preferential hiring interviews at most major airlines. American and United established resources for Spirit workers seeking new aviation positions.

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