A major airline is set to sell its planes after it crashed into bankruptcy after 34 years in business. As well as cancelling all flights, it has been confirmed the company will also sell its spare engines and parts.
Spirit Airlines confirmed on Saturday (May 2) that it will shut down after failing to secure a $500 million (£368 million) rescue deal from the Donald Trump administration. The low-cost airline was emerging from a previous bankruptcy filing, but the recent surge in jet fuel costs, as a result of the ongoing war in Iran, reportedly pushed it over the brink.
Spirit had planned to exit bankruptcy by the summer after striking a deal with creditors to shed billions in debt. However, its financial position has been weakened due to the increase in fuel costs.
The airline ceased operations at around 3am on Saturday when none of its planes were in the air and crew members were away from their bases. However, some passengers still arrived at the airport in the morning after not receiving messages about the cancellations.
The airline said it would automatically refund flights purchased with a credit or debit card. However, a bankruptcy court will determine how to compensate those who booked flights using airline points or a voucher.
Spirit had drawn up plans to merge with competitors in recent years. It discussed merging with Frontier Airlines and JetBlue Airways but plans were blocked by the Joe Biden administration.
Spirit said in a statement: “It is with great disappointment that on May 2, 2026, Spirit Airlines started an orderly wind-down of our operations, effective immediately. To our Guests: 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.”
Spirit’s CEO Dave Davis added: “In March 2026, we reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward 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.”
