The budget airline had hoped for a government bailout to arrive on Friday to prevent it from going out of business. The Trump administration announced on Friday that it had offered the airline its final proposal, but a deal could not be reached.
Spirit Airlines, an impish upstart that shook the industry with its irreverent ads and deep discount fares, announced on Saturday that it has gone out of business after 34 years.
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The ultra-low cost airline that once operated hundreds of daily flights on its bright yellow planes and employed about 17,000 people said it had “started an orderly wind-down of our operations, effective immediately.”
The airline said on its website 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 announcement said.
The company advised customers that they could expect refunds but there would be no help in booking travel on other airlines. The shutdown was expected after Friday came and went without a needed government bailout for the cash-strapped carrier.
US President Donald Trump said on Friday that his administration had given the budget airline a “final proposal” for a taxpayer-funded takeover to keep it from going under, but a deal was not reached.
Trump floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years with jet fuel prices soaring because of the war in Iran.
About 17,000 jobs could be impacted by a shutdown, Spirit lawyer Marshall Huebner said.
Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it filed for Chapter 11 protection, initiating bankruptcy proceedings, in November 2024, Spirit had lost more than $2.5 billion (€2.13 billion) since the start of 2020.
The budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion (€6.9 billion) in debts and $8.6 billion (€7.33 billion) in assets, according to court filings.
Supporters of a rescue including labour unions representing Spirit’s pilots, flight attendants and ramp workers said say a collapse would put thousands of Americans out of work and hurt consumers by reducing airline competition and increasing airfares.
Budget-conscious and leisure travellers would likely feel Spirit’s absence the most, especially in places where the airline has a big footprint 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 during the same month last year, according to aviation data firm Cirium.