Closure puts 17,000 jobs at risk and brings an end to the era of the iconic bright yellow budget jet.
WEST PALM BEACH, Florida: Spirit Airlines, the cheeky industry disruptor known for its bold advertising and deep discount fares, announced on Saturday that it is going out of business after 34 years.
The ultra-low-cost carrier, which once operated hundreds of daily flights on its signature bright yellow planes and employed around 17,000 people, said it had “started an orderly wind-down of our operations, effective immediately.”
The airline added that all flights have been cancelled and customer service is no longer available.
“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 airline said in its announcement.
Cash-strapped Spirit Airlines appeared to be edging closer to a shutdown after Friday passed without securing a much-needed government bailout.
Donald Trump said his administration had presented the budget carrier with a “final proposal” for a taxpayer-backed takeover aimed at preventing its collapse, but the lack of an agreement left the airline’s future uncertain.
A person familiar with the matter said preparations were underway for a shutdown on Saturday.
They spoke on condition of anonymity as they were not authorised to disclose confidential information. There was no immediate response from Spirit Airlines or the Trump administration.
The airline continued to assure travellers on X late Friday that flights were “operating as scheduled,” even as signs of disruption began to emerge.
However, it cancelled 52 flights on Friday, up sharply from just three the previous day, underscoring the growing strain on operations.
Donald Trump had floated the idea of a bailout last week after Spirit Airlines entered bankruptcy proceedings for the second time in less than two years, with soaring jet fuel prices linked to the Iran conflict further worsening its financial position.
About 17,000 jobs could be affected by a shutdown, a lawyer for Spirit Airlines said.
The carrier has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and mounting debt. By the time it filed for Chapter 11 protection in November 2024, it had lost more than $2.5 billion since early 2020.
It sought bankruptcy protection again in August 2025, reporting $8.1 billion in liabilities against $8.6 billion in assets, according to court filings.
17,000 jobs impacted
Supporters of a rescue effort, including labour unions representing pilots, flight attendants and ramp workers, warned that a collapse would put thousands of Americans out of work and reduce airline competition, potentially driving up airfares for consumers.
About 17,000 jobs could be affected, according to Marshall Huebner.
Budget-conscious and leisure travellers would likely feel the loss of Spirit Airlines the most, particularly in markets where it has a strong presence, such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando.
The carrier flew about 1.7 million domestic passengers in February, roughly half a million fewer than in the same month a year earlier, according to aviation analytics firm Cirium.
Spirit Airlines has also sharply reduced its capacity, with roughly half as many seats available this month compared to May 2024.
