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Published on May 2, 2026
US low-cost carrier Spirit Airlines said all of its flights had been grounded as it resumed “scheduled operations,” after the White House’s executive order.
“Spirit Aviation Holdings, Inc., the parent company of Spirit Airlines … today regrettably announced that the company has resumed normal operations, effective immediately. All Spirit flights have been grounded, and Spirit Guests are not allowed to travel to the airport,” the airline said. words in the early hours of Saturday.
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Spirit had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats, according to the latest data from Cirium.
The carrier’s collapse due to the doubling of jet fuel prices during the Iran’s two-month war it will destroy thousands of jobs. It is also a blow to the US President, Donald Trump, who proposed $500m to save Spirit despite opposition from his closest advisers and many Republicans in Congress.
Spirit had reached an agreement with its lenders that would have allowed it to emerge from a second default by late spring or early summer. But those plans fell apart after the US war on Iran sent jet fuel prices skyrocketing, raising Spirit’s price and prompting its withdrawal.
The meeting of the Spirit group ended without an agreement to save the company, a person close to the talks told Reuters on Friday.
“Unfortunately, despite the company’s best efforts, recent increases in fuel prices and other business challenges have had a significant impact on Spirit’s financial outlook,” Spirit said in announcing the “systematic layoffs”.
Mr Trump on Friday said the White House had given Spirit and its lenders a final bailout proposal, after talks broke down over a $500m bailout that would have kept the airline afloat.
“If we can help them, we will, but we have to come first,” Trump told reporters. “We could do it, we would do it, but only if it’s good.”
Spirit’s restructuring plan had pegged the price of jet fuel at about $2.24 a gallon in 2026 and $2.14 a gallon in 2027, but prices rose to about $4.51 a gallon in late April, leaving the carrier unable to survive without new revenue.
Spirit said it is working to get more than 1,300 employees home after its last flight lands at Dallas Fort Worth International Airport from Detroit Metropolitan Airport.
Transportation Secretary Sean Duffy told Reuters that he had tried to find more airlines to buy Spirit but had not found any passengers. “What can someone buy?” Duffy asked. “If nobody wants to buy them, why would we buy them?”
At a press conference on Saturday, Duffy said the deposit was set to refund customers who purchased directly from the airline. Those who bought tickets from third-party sellers should refund money to them, he said.
He said: “If you have a flight with Spirit Airlines, do not come to the airport.
Duffy added that some airlines, including United, Delta, JetBlue and Southwest, are offering $200 flights with proof of purchase on a restricted Spirit flight.
A lender close to the deal said, “The Trump administration tried hard to save Ghost, but you can’t breathe life into a corpse. Because of this, the company needs to clarify its intentions for the sake of its customers and employees.”
No carrier the size of the US Spirit – it carried 5 percent of US air traffic at one time – lasted two decades. Spirit helped keep prices low in markets where it competes with major carriers.
Its downfall shows how oil price shocks in Iran’s war-torn country have exposed the airline’s weaknesses. Around the world, airlines have been raising prices to reflect rising jet fuel costs and some airlines have cut back on flights.
German airline Lufthansa said last month canceled 20,000 flights in order to protect themselves from rising oil prices.
On Friday, India’s national carrier Air India also said it has increased fuel surcharges on all routes and said it will cut 100 flights a day across domestic and international routes.
