Airline giant shuts down after 34 years as 15,000 people laid off

Patrick O'Donnell
Sat, 02 May 2026 08:30:00 +0000

An airline giant has been forced to shut down operations after 34 years of business in a move that will see 15,000 members of staff laid off.

Spirit Airlines has ceased operations with immediate effect following the collapse of rescue negotiations with the Trump administration, the budget carrier confirmed yesterday.

The airline had been seeking a $500million (£368milllion) US Government bailout to stave off closure, but talks broke down, leaving the company with no viable path forward.

In a statement posted to its website, Spirit expressed "great disappointment" while confirming it had commenced "an orderly wind-down of our operations, effective immediately".

The budget US airline's failure marks the end of discussions that had appeared close based on reports, when the carrier believed a deal was imminent.

The collapse came as soaring jet fuel prices, triggered by the US-Israel military campaign in Iran, delivered a fatal blow to an airline already fighting for survival.

Spirit had been working through its second bankruptcy filing in recent years when the conflict erupted, sending aviation fuel costs spiralling upward.

Since US and Israeli strikes commenced at the end of February, jet fuel prices have doubled, with fuel expenses representing up to 40 per cent of airline operating costs.

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The budget carrier had been attempting to restructure during bankruptcy proceedings, reducing its fleet size and cutting back on routes, but the sudden fuel crisis proved insurmountable.

All scheduled Spirit flights have been cancelled, leaving passengers scrambling to make alternative arrangements.

Those who paid by credit or debit card will receive automatic refunds to their original payment method, the airline confirmed.

Passengers who made bookings through travel agents must approach those agents directly to secure their money back.

However, customers who used vouchers, airline points or credits face an uncertain wait, with compensation to be determined through bankruptcy court proceedings at a later stage.

The carrier also stated it cannot cover additional expenses incurred by stranded travellers, including emergency accommodation or replacement flights on other airlines.

A creditor close to the deal told Al-Jazeera: "The Trump administration made an extraordinary effort to try and save Spirit, but you can’t breathe life into a corpse.

"Given that, the company should make its intentions clear for the sake of its customers and employees."