Spirit collapse: US govt steps in with fare caps, hiring support for 17,000 workers

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The US government on Saturday announced a relief plan to support stranded travellers and thousands of workers after Spirit Airlines shut down operations following 33 years.

US President Donald Trump said the government coordinated with major airlines to prevent fare spikes, maintain access and help former Spirit employees find jobs.

The measures include capped ticket prices for passengers rebooking cancelled flights. They also include reduced fares on key routes, hiring support for laid-off workers and temporary travel benefits for employees trying to return home.
Spirit’s closure marks one of the biggest airline shutdowns in recent US aviation history. The low-cost carrier served millions of passengers annually and employed about 17,000 workers.

Trump partly blamed the collapse on former US President Joe Biden’s decision to block a proposed merger between Spirit and JetBlue Airways in 2024. Regulators had argued the deal would reduce competition and increase fares.

“Regardless of how we got here, the Trump Administration is committed to taking care of you and your family when you fly,” he said.

Major airlines agreed to cap ticket prices for stranded Spirit passengers needing replacement flights.

United Airlines, Delta Air Lines, JetBlue and Southwest Airlines rolled out temporary fare caps. Travellers must provide a Spirit confirmation number and proof of payment.

JetBlue and Southwest will offer capped fares for 72 hours. Delta will continue for five days. United plans to run the programme online for two weeks.

American Airlines and Delta also cut fares on busy routes. Allegiant Air froze prices on overlapping routes.

Frontier Airlines announced discounts of up to 50% on base fares through May 10.

Also read: After 33 years of operations, low-cost US carrier Spirit Airlines shut down operations

Federal officials advised passengers to seek refunds via chargebacks, insurance or bankruptcy filings, warning of delays.

For employees, airlines will offer travel benefits and preferential hiring interviews. American Airlines and United Airlines will launch dedicated recruitment portals.