Spirit Airlines abruptly ceased operations in the early hours of Saturday, canceling every scheduled flight and urging travelers not to go to airports. The carrier said shortly after 3 a.m. EDT that all flights were grounded, leaving passengers, pilots and flight attendants stranded and putting thousands of employees out of work.
A person familiar with the situation said Spirit directly employed roughly 9,500 people, a total that rises to about 17,000 when contractors are included. The U.S. Department of Transportation said several major airlines have agreed to measures to assist Spirit ticketholders, affected travelers and airline staff. Those measures include offering reduced “rescue” fares on routes Spirit served; the DOT also said many big carriers are extending travel privileges to former Spirit employees and providing them with preferential hiring interviews.
Spirit had been operating under bankruptcy protection and had been trying to exit that process after reaching an agreement with creditors in late February. The airline aimed to emerge from its second bankruptcy by summer, planning to shrink its fleet and reconfigure its network to reach a sustainable business model. Among its strategies was adding first-class seating to attract more premium revenue, but company leaders were unable to stabilize the carrier.
A recent jump in jet fuel prices — which some reports linked to the start of the U.S. war in Iran — accelerated the depletion of Spirit’s cash reserves. Fuel, typically the second-largest expense after labor, can account for roughly a third of an airline’s operating costs, and rising fuel bills further squeezed Spirit’s thin margins. The carrier also continued to contend with operational setbacks, including an engine defect that required lengthy inspections and repairs, hampering recovery efforts.
Spirit previously sought rescue through a proposed merger with JetBlue, but a federal judge blocked that deal in 2024 after the Biden administration sued on antitrust grounds. During the merger trial, Spirit’s then-CEO warned the airline risked shutting down if the tie-up did not proceed.
Before its collapse, Spirit represented about 1.8% of U.S. airline capacity. Industry observers caution that the disappearance of an ultra-low-cost carrier could push base fares higher, since such airlines historically exert downward pressure on ticket prices by competing aggressively on cost.
This is a developing story and will be updated as new information becomes available.
Reporting contributions: Sean Cudahy and Ben Mutzabaugh.
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