Spirit Airlines begins orderly wind-down after failing to reach deal for bailout lifeline

Talks with bondholders for a government bailout this week failed to yield a deal.

May 2, 2026 - 13:17

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Spirit Airlines begins orderly wind-down after failing to reach deal for bailout lifeline

Spirit Airlines airplanes sit parked at Fort Lauderdale - Hollywood International Airport, in Fort Lauderdale, Florida, April 23, 2026.

Marco Bello | Reuters

Spirit Airlines said early Saturday it has begun an orderly wind-down of its operations effective immediately.

"To our Guests: all flights have been cancelled, and customer service is no longer available," Spirit said on its website, which replaced its booking facility with the announcement and guidance for customers and vendors.

"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," the airline said.

Earlier, people familiar with the matter said the iconic budget airline was preparing to shut down after it failed to reach a deal for a lifeline. The people requested anonymity because they weren't authorized to speak about the discussions.

The airline said passengers should not go to airports for their flights, but instead referred them to an FAQ for more information and next steps on how to pursue refunds and retrieve lost baggage.

Spirit also said it had hoped to work with its vendors for the long term.

"We are committed to working with our vendors through the wind-down process and will be in touch in the coming days to discuss next steps. Any outstanding claims will need to be addressed through the bankruptcy process," Spirit said. It added that vendors will receive direct communication from courts.

The Trump administration last month had offered a $500 million loan that could have given the government up to a 90% stake in the Florida-based airline. But talks with bondholders for a government bailout this week failed to yield a deal.

President Donald Trump said earlier Friday that his administration had extended a "final" bailout proposal.

"I would say we're driving a tough deal, but it's one of those things we will do it, or we won't," Trump told reporters on Friday. "Seems like the other lenders are blocking. They think they'll get bumped down in priority."

"We come first," Trump said.

The Wall Street Journal reported earlier that Spirit was preparing to shut down.

Other airlines said Friday that they have plans to help fly Spirit customers and crews if Spirit stops operating.

Spirit, which pioneered the budget airline model of low fares and fees for everything else in the U.S., had been profitable, but it was struggling in recent years. It faced rising labor and other costs, changing consumer tastes toward more upscale travel and an engine recall. A planned acquisition of Spirit by JetBlue was successfully challenged by the Biden administration two years ago.

The airline had expected to emerge from bankruptcy midyear before the jump in fuel prices.

Spirit flew around 1.7 million U.S. domestic passengers, with a 3.9% market share in the U.S. market, as of February, according to aviation data firm Cirium. That was down from 5.1% market share last year, as the airline axed flights to cut costs.

As of Friday at 6:25 p.m., Spirit had 44 flights operating, according to Flightradar24.