U.S. discount carrier Spirit Airlines (SAVEQ) has ceased operations after failing to reach a deal for a bailout with the Trump administration.
Spirit had hoped to secure an agreement with bondholders on an 11th-hour bailout from U.S. President Donald Trump’s government. But no such deal materialized, forcing a shutdown.
“We regret to inform you that all Spirit Airlines flights have been canceled, effective immediately,” reads a message on Spirit’s website and app.
Spirit was an iconic U.S. budget airline known for its bright yellow planes, cheap fares, and no-frills service.
The carrier had been struggling to survive after entering its second bankruptcy since November 2024.
The airline had struggled with multiple problems, including a failed merger, shifting consumer tastes, surging competition, and rising costs, notably for jet fuel.
Jet fuel costs in America have doubled since the U.S. and Israel attacked Iran on Feb. 28.
Spirit said its 17,000 employees have now lost their jobs.
The airline adds on its website that it will automatically refund flights purchased through Spirit with a credit or debit card.
Last month, the Trump administration offered a $500 million U.S. loan that could have given the government up to a 90% stake in the Florida-based airline.
However, talks with bondholders for a government bailout this week failed to produce a deal.
Spirit Airlines flew 1.7 million U.S. domestic passengers, with a 3.9% market share in the American aviation industry as of February this year, according to market data.
Spirit’s stock was last trading at $0.47 U.S. on the over the counter (OTC) market in the U.S.
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