Spirit Airlines says they are going out of business

The ultra-low-cost US carrier Spirit Airlines has "started an orderly wind-down of our operations," the company said Saturday.

The move was "effective immediately," with all flights canceled and customer service no longer available. The carrier said customers could use its automatic refund process to get money back for their tickets.

"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 statement said.

The move could affect some 17,000 jobs.

The US airline said its financial outlook was impacted by rising oil prices and "other pressures" on their business. The war in Iran has driven fuel prices to over $4.5 per gallon by the end of April, more than double than what the company had predicted for 2026.

No deal on government bailout

Previously, Spirit Airlines had hoped to secure a government bailout, with President Donald Trump floating the possibility last week. While the details of the proposal were not officially confirmed, US media reported it would involve the government providing the airline with $500 billion (around 427 billion euros) of taxpayer money in exchange for a stake in the airline.

"If we can help them, we will, but we have to come first," Trump told reporters, saying his administration would only act "if it's a good deal."

On Friday, Trump said his administration had offered a "final proposal" to keep Spirit Airlines in business, but no deal was reached.

Spirit Airlines seeks bankruptcy protection twice in two years

The low-cost company, once the largest in the US, has struggled for years, failing to recover from the travel disruption of the COVID pandemic in the early 2020s. It filed for bankruptcy protection in 2024 and again in 2025. It has also cut capacity amid falling passenger numbers in recent years.

In February this year, Spirit Airlines announced a deal with creditors to restructure its debts, but the deal did not account for the massive price hike triggered by the Iran war.

Edited by: Louis Oelofse