by Lacey Pfalz
Last updated: 10:15 AM ET, Sat May 2, 2026
On Saturday, May 2, Spirit Aviation Holdings, Inc., the parent
company of Spirit Airlines, announced that the carrier started a wind-down of operations,
effective immediately.
All Spirit flights have been cancelled and customers are
being advised to book with other carriers.
In a statement from Spirit, the airline’s representatives
blamed “recent material increase in oil prices and other pressures on the
business” for the its financial outlook. Reports surfaced on May 1 that failing
to make a deal with the Trump
Administration to save the airline doomed the company.
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Original Text
Sources told major news outlets on May 1 that beleaguered Spirit Airlines is preparing to shut down its operations after failing to make a deal with the Trump Administration to save the airline.
The airline told The New York Times that it was operating normally, and declined to comment on the news, though the news broke with at least two sources.
Spirit Airlines struggled post-pandemic, failing to turn a profit for six years. It declared bankruptcy in 2024 and entered into two restructuring phases, but the economic fallout from the U.S.-Israel war on Iran and the subsequent closing of the Strait of Hormuz, which led to massive increases in price for gas and jet fuel, was the straw that broke the proverbial camel’s back.
The Trump Administration did offer a bailout plan worth $500 million, which would have led the government to own 90% of the budget airline, which some investors opposed due to the personal financial risk of the airline failing following the bailout. Some Republican lawmakers also opposed the government bailout plan, further complicating things.
Prior to this, it was considering a merger with JetBlue, which also failed.
Spirit Airlines employees approximately 17,000 people. It’s unclear what will happen: when the airline’s operations and flights will cease, and how many people will be impacted by the closure. Spirit Airlines has yet to make an official announcement of the closure.
It’s quite possible other airlines will step in to assist impacted travelers. United Airlines told CNBC today that it was “preparing to support Spirit customers and employees,” potentially offering much-needed relief for both travelers and Spirit employees who find themselves without a job.
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