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Spirit Airlines is officially shutting down, marking the end of one of the most recognizable ultra-low-cost carriers in the U.S.

The airline announced Saturday that it has ceased operations immediately, canceling all flights and shutting down customer service. In a statement posted to its website, the company said it has begun an “orderly wind-down” after 34 years in the industry.

“We are proud of the impact of our ultra-low-cost model,” the airline said, noting it had hoped to continue serving travelers for years to come.

What Passengers Should Know

For customers, the news brings immediate disruption. Spirit says refunds will be issued, but passengers will not receive assistance rebooking flights with other airlines.

The shutdown follows months of financial uncertainty and comes after the airline failed to secure a government-backed deal to stay afloat. President Donald Trump said his administration had offered a final proposal for a taxpayer-supported takeover, but no agreement was reached.

How We Got Here

Spirit had been struggling for years, with challenges intensifying after the COVID-19 pandemic. Rising fuel costs (particularly tied to global tensions involving Iran) added pressure to an already strained business model.

By late 2024, the airline had filed for Chapter 11 bankruptcy protection after reporting billions in losses. It sought protection again in 2025, carrying more than $8 billion in debt.

The Collapse Could Have Wide-Reaching Effects.

Spirit employed approximately 17,000 workers, and industry analysts say its absence could lead to higher airfare prices, especially for budget-conscious travelers who relied on its low-cost fares.

The airline had a strong presence in cities like Las Vegas, Fort Lauderdale, and Orlando, and carried roughly 1.7 million domestic passengers in February alone, though that number had declined compared to the previous year.

Supporters of a potential bailout, including labor unions, warned that losing Spirit would reduce competition across the airline industry, something that could ultimately impact travelers nationwide.

For now, one of the industry’s most disruptive players is grounded for good.