Spirit Airlines Wraps Up Refunds After Sudden Shutdown
Spirit Airlines says it has nearly finished reimbursing customers for flights it abruptly canceled this past weekend when the carrier shut down operations. The budget airline left thousands of passengers and employees stranded after deciding Saturday to cease flying, ending a business that had been struggling for years before a spike in jet fuel prices delivered the final blow.
Spirit had roughly 4,000 flights scheduled through May 15, according to Reuters. The company hasn’t turned a profit since 2019, CNBC reports, and two previous bankruptcy restructuring attempts failed. The sharp rise in oil costs tied to the U.S.-Israeli conflict with Iran pushed the airline over the edge, Spirit said in a statement.
“Unfortunately, despite the company’s best efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” the statement read. “With no additional funding available, Spirit had no choice but to begin this wind-down.”
Transportation Secretary Sean Duffy, however, blamed the Biden administration for the collapse. The Justice Department under Biden blocked a proposed merger between Spirit and JetBlue. “Many at the time said this was a disaster, this merger should have been allowed,” Duffy said. “And this today shows it’s not better for travelers, pricing, or competition—actually it’s worse.”
Duffy advised Spirit customers not to show up at airports. “There will be no one here to assist you,” he said, adding that the airline will undergo an orderly liquidation. Conservative critics pointed to Senator Elizabeth Warren’s 2024 praise for blocking the merger, which she said would have meant “fewer flights and higher fares.”
Warren fired back on X, saying the collapse was due to oil prices and that the “JetBlue merger failed because a judge, appointed by Ronald Reagan, said the deal was illegal.” She added, “Republicans are desperate to shift blame from higher costs hitting families.”