Spirit Airlines officially closed its doors, suspending operations in the early hours of Saturday morning.
The airline, which was the first It is reported to be considering liquidation. Several weeks ago he announced shortly after 3 a.m. EDT on Saturday that all flights had been canceled and said travelers should not go to the airport.
The abrupt grounding of planes left travelers, pilots and flight attendants stranded at airports across the country, and thousands of employees without jobs.
Spirit travelers who went to the airport Saturday morning found kiosks displaying a message that the airline had closed. Meanwhile, at Fort Lauderdale-Hollywood International Airport (FLL), the low-cost airline’s home base, cameras captured a row of parked Spirit planes.
The shutdown of all operations on Saturday came after a last-ditch attempt to reach an agreement with the federal government failed to come to fruition.
Spirit has about 9,500 employees, according to a source familiar with the matter, although that number rises to 17,000 if contractors are included.
The U.S. Department of Transportation, in a statement issued early Saturday, said several major airlines had agreed to “a series of actions…to support Spirit ticket holders, the general flying public, and airline employees affected by Spirit’s cessation of operations.”
Among them was the availability of Reduced and “bailout” rates from former rivals. on routes Spirit flew, with details varying by airline. The DOT also said that most major airlines were extending travel privileges to former Spirit employees and that they would receive “preferential employment interviews to ensure they skip the line.”
COMPLETE TPG COVERAGE: Spirit Airlines closes
The Florida-based airline had hoped to emerge from its second bankruptcy this summer. after reaching an agreement with creditors at the end of February; was in the process of reducing its fleet and reconfiguring its network in an effort to find a more viable business model.
Since the start of the U.S. war in Iran, the price of jet fuel has skyrocketed, wiping out the small profit margin Spirit hoped to make upon emerging from bankruptcy and causing the airline to deplete its cash reserves faster than expected. Jet fuel is airlines’ second largest operating expense (after labor) and typically accounts for about one-third of an airline’s expenses.
While higher fuel costs have put the put pressure on the entire airline industrySpirit’s already fragile position left it worse off than most of its competitors.
Spirit had struggled to return to profitability since the coronavirus pandemic, with a wide range of headwinds against the airline. These include rising costs and an engine defect that forced the carrier to ground a significant portion of its fleet for long inspection and repair periods.
The airline has made changes to its business model in recent years to try to thrive in today’s economy: it has attempted to reduce its footprint and network, as well as adding first class seats to try to obtain crucial premium income. However, the changes appear to be too little, too late.
Related: Spirit Could Close: Here’s What Travelers Need to Know
The airline had flown about 1.8% of U.S. airline capacity, according to TD Cowen airline analyst Tom Fitzgerald.
Spirit attempted to merge with JetBlue in a deal that would have seen the New York-based airline acquire and absorb Spirit, but the the merger was blocked by a federal judge in 2024 after the Biden administration sued on antitrust grounds. During the trial, Spirit’s then-CEO Ted Christie testified that without being acquired, Spirit would be at risk of going out of business.
Even travelers who rarely flew on the Spirit could feel the effects of its disappearance. Historically, ultra-low-cost airlines have helped keep airfares low, putting pressure on larger airlines by undercutting base fare prices. Now, the airline industry has one less low-cost competitor.
This is a developing story, which will be updated with new information as it becomes available.
