The Final Descent: Spirit Airlines Enters Bankruptcy Wind-Down After Shocking Collapse

Spirit Airlines officially ended its 34-year run over the weekend, but the real work of shutting down the company began in earnest Tuesday in a White Plains bankruptcy court. The budget for the wind-down? Roughly $217 million, though that figure could shift as the process stretches into 2028.

The airline, which once carried 50,000 passengers a day, filed a plan that includes more than $52 million in employee costs through July and another $52 million for aircraft expenses. According to aviation data from Cirium, Spirit had 59 A320s in service and 63 parked, plus 37 larger A321s flying and 13 stored. Over three-quarters of its fleet was leased.

Spirit’s lawyer, Marshall Huebner, told the court that a sudden spike in jet fuel prices—triggered by U.S.-Israel strikes on Iran in February—added $100 million in extra costs over March and April. That, on top of heavy debt and rising expenses, left no room to maneuver. Talks of a $500 million government loan, which would have given Washington up to a 90% stake, fell apart late last week. By Saturday at 3 a.m., Spirit was grounded.

Tens of thousands of stranded passengers scrambled for seats on American, JetBlue, Southwest, and United, which stepped in to help. About 17,000 direct and indirect employees lost their jobs.

“This is a sad and unfortunate event,” said Judge Sean Lane at Tuesday’s hearing. “The stress for these employees is very high. Bankruptcy can be a difficult process, and today is a sad example of that.”