Spirit Airlines, known for their discounted fares, has shut down operations effective immediately after 34 years, per AP News.
On Saturday (May 2), the ultralow cost airline announced that all flights have been canceled and customer service is no longer available.
“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 announcement said.
The airline, which was struggling to maintain consistent profitability since the Covid-19 pandemic, had been looking to emerge from its second bankruptcy in less than a year.
But those plans were derailed amid soaring jet fuel costs sparked by the outbreak of the war with Iran.
“Despite the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” the company’s statement said. “With no additional funding available to the company, Spirit had no choice but to begin this wind-down.”
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. He had a stark message for people flying with Spirit.
“If you have a flight scheduled with Spirit Airlines, don’t show up at the airport. There will be no one here to assist you,” Duffy said.
Last month, Spirit approached the White House for financial assistance, and President Donald Trump initially appeared receptive. But on Friday, reports surfaced that a wind-down was imminent after negotiations between the company, its bondholders and the White House appeared to break down.
Other airlines have offered to help both Spirit passengers and employees amid the shutdown. According to Duffy, United, Delta, JetBlue and Southwest were offering $200 one-way flights for people who could confirm that they had Spirit confirmation numbers and proof of purchase for a limited time.
Duffy also said other airlines would help with Spirit employees who might be stranded as well as offering them a preferential application process as they look for work.
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