Spirit Airlines has confirmed it has canceled every flight as it moves to “wind-down” its operations.
The ultra-low-cost carrier, known for its bright yellow aircraft, has operated for 34 years. After failing to secure a $500 million bailout from the Trump administration, the airline has now said it is shutting down.
President Donald Trump said on Friday (May 1) that his administration had presented the budget airline with a “final proposal” for a taxpayer-backed takeover intended to prevent it from collapsing, but no agreement was reached.
Reports suggested an early version of the plan would have left the US government effectively owning up to 90 percent of the company.
The shutdown is expected to put as many as 17,000 jobs at risk.
The airline posted the following statement on its website: “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 canceled, 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 said passengers should anticipate refunds, though it will not assist travellers with rebooking on other airlines.
BBC News reports that reimbursement for customers who paid using vouchers, credits, airline points, or other non-cash methods will be decided later as part of the bankruptcy court process.
The carrier has faced prolonged financial pressure since the Covid-19 pandemic, as operating expenses climbed and debt burdens increased.
When Spirit filed for Chapter 11 protection in November 2024, it had recorded losses of more than $2.5 billion dating back to the start of 2020.
It then sought bankruptcy protection again in August 2025, disclosing $8.1 billion in debts and $8.6 billion in assets, according to court filings.
In comments to The New York Times, a White House spokesperson attributed Spirit’s collapse to the Biden administration.
“The Trump administration continues to monitor the situation and overall health of the US aviation industry that millions of Americans rely on every day for essential travel and their livelihoods,” Kush Desai told the newspaper.
Spirit’s disappearance is expected to hit budget-minded and leisure travellers hardest—particularly in markets where the airline has had a significant presence, including Las Vegas and Florida hubs such as Fort Lauderdale and Orlando.