Spirit Airlines, an impish upstart that shook up the industry with its irreverent ads and deep discount fares, announced Saturday that it has gone out of business after 34 years.
The ultra-low-cost airline that once operated hundreds of daily flights on its bright yellow planes and employed about 17,000 people said it had "started an orderly wind-down of our operations, effective immediately."
Although Spirit had gone bankrupt twice before, the company said high oil prices, which have been rising because of the war with Iran, made it impossible to stay aloft.
Customer service shuts down
The airline said on its website that all flights have been canceled and customer service is no longer available. Some passengers arrived Saturday for flights and were stunned to find them canceled, while workers learned overnight they were out of jobs.
"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's announcement said.
U.S. Transportation Secretary Sean Duffy said Saturday that Spirit had a reserve fund set up for customers who bought directly from the airline to get refunds. People who bought from third-party vendors like travel agents would have to seek refunds from them.
Duffy said United, Delta, JetBlue and Southwest were offering $200 one-way flights for a limited time for people who had Spirit confirmation numbers and proof of purchase. Other airlines also would help Spirit employees who might be stranded, as well as offering them a preferential application process as they look for work.
Spirit said in a statement it was working to get more than 1,300 crew to their home bases, and that the final Spirit flight landed at Dallas Fort Worth International Airport from Detroit Metropolitan Airport.
The company advised customers that they could expect refunds but there would be no help in booking travel on other airlines.
No bailout materialized
The Trump administration had considered a government bailout for the cash-strapped business to keep it from going under, but a deal was not reached. Of the potential bailout, Duffy said Saturday, "We oftentimes don't have half a billion dollars laying around."
President Donald Trump had floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years with jet fuel prices soaring because of the Iran war.
As late as Friday afternoon, Trump had said his administration was looking at a bailout for Spirit and had given the budget carrier a "final proposal" for a taxpayer-funded takeover.
Spirit proudly disrupted the penny-pinching portion of the airlines industry with its no-frills, low-cost flights and provocative ads like its "Check Out the Oil on Our Beaches" campaign after the Deepwater Horizon disaster in 2010, referencing suntan oil, but alluding to the crude spilled on the Gulf Coast.
However, Spirit has struggled financially since the pandemic, weighed down by rising operating costs and growing debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had lost more than $2.5 billion since the start of 2020.
The budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion in debts and $8.6 billion in assets, according to court filings.
What to do to get home and get refunds
The collapse of Spirit could mark the end of an era for travelers with a certain financial sensibility. But if you've been snagged in their now-defunct flight schedule, here are some things to know on how to get home, and get whole.
Many airlines that used to compete with Spirit now are parachuting in with deals to save their travelers. American, United, Delta, JetBlue, Frontier and Southwest are capping or reducing ticket prices to help people book new flights.
There is a limited time window for this deal, which prioritizes now-stranded travelers who need to find a new way to their next destination.
For example, Southwest's offer is only available in person at an airport ticket counter through Wednesday, May 6, according to industry trade group, Airlines for America and the Department of Transportation. United, meanwhile, is allowing such bookings for up to two weeks, which can be accessed online.
For those who were planning to fly Spirit and now need to find an alternative to the ultra-low-cost carrier, American, Allegiant, Frontier and Delta advertised reduced fares on the same routes Spirit once flew
Many company announcements include maps showing where its routes overlapped with Spirit's, which can help narrow the search to find a comparable flight.
"Spirit Airlines played an important role in expanding access to affordable travel and bringing more low fares to more people," said Bobby Schroeter, Frontier's CCO. "We recognize this is a difficult time for their customers and team members."
Getting your money back in refunds
Spirit said they were prepared for an "orderly wind-down" of its operations, and that it will process refunds automatically for any flights booked on a credit or debit card.
Travelers who booked through third-party travel agencies should direct refund requests to those agents.
Anyone else who got their reservation through vouchers, credit or points will have to wait and see as Spirit goes through the bankruptcy process.
If there are questions about whether your money will make a safe landing back to your wallet, there are other ways to try to claw back your cash for the Spirit flight not taken.
The DOT suggests contacting your credit card company and exercising your rights under the Fair Credit Billing Act, by requesting a "chargeback" for services not rendered.
If you purchased travel insurance or it is included in your credit card's policy and perks, call them to see if they cover "insolvency" or "service cessation."
The last resort would be filing a bankruptcy claim, but officials warn this route eats up time and money, and ultimately might only result in a partial refund.
Save all documentation
The National Consumers League warned travelers to keep all documentation to prove they were booked on Spirit flights, including receipts, booking confirmations, cancellation notices and any correspondence with the airline. The nonprofit watchdog organization also urged those affected to act immediately as credit card and insurance companies might have strict deadlines.
"Not all Spirit customers should assume a refund will automatically appear," said John Breyault, the league's vice president of public policy, telecommunications and fraud. "When an airline shuts down this suddenly, it's up to travelers to take proactive steps to have the best chance of getting their money back."
Expanding capacity and perks
American and United both said it is trying to adjust its fleet so it can help more stranded passengers. American said it is looking into tapping larger planes and United said it potentially will add more flights on routes where they overlapped with Spirit.
"We are reviewing opportunities to add additional capacity, including utilizing larger aircraft on critical routes — to support as many affected passengers as possible," American said via an Airlines for America statement.
Southwest also said it will offer a status-match, by honoring Spirit's Silver and Gold status members with its own A-List program.
Hertz is also advertising car-rental deals for alternative transportation, offering one-way vehicles and up to 25 percent off for those who find "the road might be the fastest way home in scenarios like this one."
I'm an employee: Get me out of here
Spirit crew members who are stuck at their destination should be granted airline travel benefits, including spare jump seats, where available on most major carriers.
American said, "We will provide transportation for Spirit team members who have been displaced on a work trip," according to an Airlines for America statement.
The DOT also said the other companies are offering preferential interviews to help expedite the job search for former Spirit pilots, flight attendants and other employees. American said it will be setting up recruiting events for them.
Yamat reported from Las Vegas, Amy from Atlanta, Catalini reported from Morrisville, Pa., and Ho from Seattle. Associated Press writer Josh Funk in Omaha, Neb., contributed.