Spirit Airlines Shuts Down, Cancels All Flights After Fuel Crisis Ends Bailout Hopes

Spirit Airlines has grounded every flight and begun a complete shutdown, stranding thousands of passengers and throwing the future of its 17,000 employees into doubt. The low-cost carrier announced early Saturday that it was starting an “orderly wind-down of operations,” telling customers not to come to the airport. The collapse came after a proposed $500 million White House rescue package fell apart, with the Trump administration unable to broker a last-minute deal.

The airline had been navigating its second bankruptcy, hoping to emerge by early summer. But the two-month-old Iran war sent jet fuel prices soaring from a projected $2.24 per gallon to $4.51 by late April, wiping out Spirit’s recovery plan. A board meeting Friday ended with no agreement to save the company, sources said.

President Trump said the White House made a final offer to Spirit and its creditors, but insisted any deal had to be good for taxpayers. Transportation Secretary Sean Duffy said he tried to find a buyer for Spirit but no other airline was interested. “What would someone buy?” he asked.

Spirit had 4,119 domestic flights scheduled between May 1 and May 15, offering more than 800,000 seats. It once accounted for 5% of U.S. flights and helped keep fares low in competitive markets. No carrier of its size has liquidated in two decades.

The shutdown is the starkest sign yet of how the war’s fuel shock is hitting weaker airlines. Lufthansa cut 20,000 flights last month. Air India has raised fuel surcharges and is trimming 100 flights daily. For Spirit, the math simply stopped working.