Spirit Shuts Down After 34 Years: What The Airline Said About Cancelled Flights, Refunds And More

(MENAFN- Live Mint) Spirit Airlines announced on Saturday that it has cancelled all flights as it begins an“orderly wind-down of operations,” citing a sharp rise in fuel prices in recent weeks that left it with no alternative. The struggling airline, which had been preparing to exit its second bankruptcy within a year, said it would shut down operations after a potential bailout from the White House did not materialise.

For customers, the airline mentioned it would automatically issue refunds for any flights purchased with a credit or debit card, returning the amount to the original mode of payment.

"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. 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 airline said in a statement.

It added, "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.”

Spirit Airlines said its website displayed a notice informing passengers that“customer service is no longer available”, while assuring that refunds for purchased tickets would be processed.

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Jet fuel prices have surged to more than double their earlier levels since the conflict with Iran began in February, forcing major US airlines to cut profit forecasts, scale back expansion plans, or take both measures.

Spirit's President and CEO Dave Davis reacts

Davis said in March that the company had reached an agreement with bondholders on a restructuring plan that would have enabled it to continue operating as a viable business.

“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,” David stated.

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Meanwhile, US President Donald Trump said on Friday that Spirit Airlines had been presented with a“final proposal” for a bailout package. Officials from the Trump administration also slammed the earlier administration of Joe Biden for blocking a proposed $3.8 billion takeover of the airline by JetBlue, arguing the move would have negatively affected consumers.

In its statement, Spirit said there were "extensive and comprehensive efforts to restructure the business," but added that the absence of additional funding meant it“had no choice but to begin this wind-down.”

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Jan Brueckner, an emeritus economics professor at the University of California, Irvine, told AFP last week that the surge in fuel prices was "the straw that broke the camel's back."

American Airlines said early Saturday that it was in contact with US authorities regarding "steps we are taking to help mitigate the impact on the communities Spirit serves and the traveling public." The airline added that it was offering "rescue fares" on Spirit's routes.

United Airlines also said it was providing "price-capped, one-way tickets from most cities where Spirit flew."

Spirit Airlines, which launched operations in 1992, was widely recognised for its yellow aircraft and had a workforce of just over 11,000 employees as of 2024.

(With inputs from AFP)

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