Spirit Airlines has announced it is shutting down after 34 years in operation, citing rising fuel costs and ongoing financial challenges.
The ultra-low-cost carrier said it has begun an “orderly wind-down” of operations effective immediately, canceling all flights and ceasing customer service.
The airline, known for its bright yellow planes and budget fares, employed approximately 17,000 people and operated hundreds of daily flights across its network.
In a statement, the company said escalating oil prices made it unsustainable to continue operations.
“The wind-down follows the Company’s extensive and comprehensive efforts to restructure the business
and pursue transactions to strengthen Spirit’s financial position and create a sustainable path forward.
Unfortunately, despite the Company’s efforts, the recent material increase in oil prices and other
pressures on the business have significantly impacted Spirit’s financial outlook. With no additional
funding available to the Company, Spirit had no choice but to begin this wind-down”, the statement said.
Passengers across the United States were left scrambling, with many arriving at airports only to discover their flights had been canceled. Employees were also reportedly informed overnight that they were out of jobs.
Meanwhile, major carriers including United Airlines, Delta Air Lines, JetBlue Airways, and Southwest Airlines are offering limited $200 one-way fares for affected passengers with proof of purchase.
Customers have been advised that while refunds will be issued, the airline will not assist with rebooking travel on other carriers.
“Spirit will automatically process refunds for any flights purchased through Spirit with a credit or debit card to the original form of payment. Guests who booked flights via a travel agent should contact the travel agent directly to request a refund. Compensation for Guests who booked flights using any other methods, including a voucher, credit or Free Spirit points, will be determined at a later date through the bankruptcy process”, the statement said.