Spirit Airlines, the troubled US ultra-low-cost carrier, has canceled all flights and announced it is ceasing operations “immediately” after talks with the US government over a bailout fell through. The company stated it has “started an orderly wind-down of our operations.”

All flights are canceled, customer service is no longer available, and passengers are being directed to an automatic refund process for their tickets. In a statement, the company expressed pride in its impact on the industry over 34 years but cited rising oil prices and “other pressures” as factors undermining its financial outlook.

The war in Iran has driven fuel prices to over $4.5 per gallon by the end of April, more than double what the company had predicted for 2026. This surge, combined with other economic pressures, proved insurmountable.

Spirit Airlines had previously hoped to secure a government bailout, with President Donald Trump floating the possibility last week. While details were not officially confirmed, US media reported that the proposal would involve the government providing $500 billion (around €427 billion) in taxpayer money in exchange for a stake in the airline.

Trump told reporters, “If we can help them, we will, but we have to come first,” adding that his administration would only act “if it’s a good deal.” On Friday, Trump said his administration had offered a “final proposal” to keep Spirit Airlines in business, but no deal was reached.

The shutdown could affect some 17,000 jobs, marking a significant blow to the US aviation industry and highlighting the fragility of the ultra-low-cost carrier model.

Source: www.dw.com