Spirit Airlines, an American ultra-low-cost carrier, has announced the commencement of an orderly wind-down of operations, effective immediately.
All Spirit flights have been cancelled, and passengers have been advised not to travel to the airport. The decision follows the company’s efforts to restructure its business and secure a sustainable financial path, which were impacted by a sharp rise in fuel prices and continued operational pressures.
Dave Davis, President and Chief Executive Officer, Spirit Airlines, said, “For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while driving affordability across the industry. 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 has ultimately left us with no alternative but to pursue an orderly wind-down of the Company.”
He added, “Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure. This is tremendously disappointing and not the outcome any of us wanted.”
Davis also acknowledged the support of government authorities and industry stakeholders, stating, “I want to thank the Administration, in particular Secretary Howard Lutnick and the U.S. Department of Commerce, for their extraordinary efforts to try to preserve jobs and service across the country, along with the U.S. Department of Transportation for their assistance to minimize the disruption to our Guests in the days and weeks ahead. Many stakeholders have stepped up for Spirit through our restructuring. We are grateful to our labour union partners, aircraft lessors, other business partners and our financial stakeholders, including Citadel, Cyrus Capital and Ares Management Corp, for working with us on tangible solutions to restructure our business.”
He further expressed appreciation for the airline’s workforce, noting, “Most of all, we are grateful to our relentless Spirit team for their tremendous effort during our restructuring. They have tirelessly provided a safe, affordable and award-winning option to the traveling public.”
Spirit confirmed that refunds will be automatically processed for tickets purchased directly using credit or debit cards. Passengers who booked through travel agents have been advised to contact their agents, while compensation for bookings made through vouchers, credits or Free Spirit points will be determined through the bankruptcy process.
