‘No alternative’: Spirit Airlines ‘winding down’ operations amid fuel crisis
&imwidth=600&imheight=450&format=webp&quality=medium "‘No alternative’: Spirit Airlines ‘winding down’ operations amid fuel crisis")
A Spirit Airlines Airbus A320 Photograph: (AFP)
Spirit Airlines cancelled all flights and began a shutdown due to soaring fuel costs and a failed bailout, with the CEO saying the airline had no funding to continue operations.
Low-cost American carrier Spirit Airlines on Saturday (May 2) said that it has cancelled all flights as part of an “orderly wind-down of operations”, citing a sharp rise in jet fuel prices. This comes after the airline, which had been preparing to emerge from its second bankruptcy in a year, failed to secure a White House bailout. Its parent company, Spirit Aviation Holdings, confirmed that the shutdown is effective immediately.
In a statement, the airlines said, “It is with great disappointment that Spirit Airlines has started winding down its global operations, effective immediately. All flights have been cancelled, and customer service is no longer available.”
Spirit Airlines added that while they cannot help rebook flights with another airline, they will issue refunds for any flights purchased through Spirit.
“While we are not able to help rebook your flight on another airline, we will automatically process refunds for any flights purchased through Spirit with a credit or debit card to the original form of payment,” the statement added.
The airlines said, “We are proud of the impact of our ultra-low-cost model on the industry for the last 33 years and had hoped to serve our Guests for many years to come.”
Why is Spirit Airlines shutting down?
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Fuel prices have surged dramatically in recent weeks following escalating tensions linked to Iran, placing significant financial strain on airlines. Spirit’s President and CEO Dave Davis said the company had “reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business.”
He added, “However, 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.”
“Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure. This is tremendously disappointing and not the outcome any of us wanted,” he said.
‘Final proposal’
US President Donald Trump said the airline had been given a “final proposal” for a bailout, but indicated support would depend on whether it was a viable deal.
Meanwhile, rival carriers have stepped in to reduce disruption. American Airlines is offering discounted “rescue fares” on affected routes, while United Airlines is providing price-capped one-way tickets from cities previously served by Spirit.
Founded in 1992, Spirit Airlines became known for its ultra-low-cost model and distinctive yellow planes. As of 2024, it employed over 11,000 people, making its shutdown a significant blow to the aviation sector.
