Spirit Airlines announced over the weekend that it will permanently suspend all operations, effective May 2. All Spirit flights were immediately canceled, stranding thousands of passengers and leaving them uncertain about future travel plans.
Here’s what you need to know about the collapse of Spirit Airlines, what happens next and what you can do now.
Why did Spirit Airlines fail?
Spirit Airlines suddenly went bankrupt. Years of financial losses and two bankruptcies starting in 2024 have been exacerbated by rising jet fuel costs associated with the Iran war. According to CNBC, the airline was in talks with the Trump administration for a $500 million federal bailout, but the plan was rejected, forcing the airline to shut down on Saturday.
“For more than 30 years, Spirit Airlines has played an important role in making travel accessible and connecting people while driving across the industry,” said Dave Davis, CEO of Spirit, in the announcement of the closure (PDF). “Sustaining the business requires hundreds of millions of additional dollars that Spirit does not have and cannot afford. This is very disappointing and not the outcome that any of us wanted.”
How many people are affected?
It’s unclear how many travelers were affected by the Spirit Airlines shutdown, but news reports indicate that thousands of passengers were stranded or had their flights canceled, causing major disruptions in airports such as Orlando and Fort Lauderdale.
Spirit said 17,000 direct and indirect workers lost their jobs as a result of the closure.
What should you do now if your flight is cancelled?
Spirit Airlines said it intends to “systematically wind down” which includes eliminating all flights and customer service operations. If you’re stuck in limbo with canceled flights, don’t go to the airport. If you need to travel quickly, check other airlines for limited time fares. You can use your Spirit Airlines confirmation number and proof of purchase to rebook with another airline as quickly as possible.
The National Consumers League offered some tips for affected fliers, including keeping all booking information, receipts and records for a potential bankruptcy or refund claim (more on that below). NCL also recommends checking your accounts for refunds, checking your travel insurance and using discounted or discounted airfare when rebooking flights.
“Not all Spirit customers should assume that refunds will automatically appear,” said John Breyault, vice president of public policy, communications and fraud at NCL. “When an airline closes this suddenly, it’s up to travelers to take immediate action to have the best chance of getting their money back.”
Can you get a refund for a canceled Spirit flight?
Yes. If you bought your ticket directly through Spirit Airlines with a debit or credit card, the company said it will automatically refund those ticket costs. If you booked through a travel agent, contact your agent directly for a refund.
If you booked your tickets with vouchers, credits or loyalty points, your refund process will not be as fast, and Spirit said it may not result in a full refund. According to Spirit, compensation “will be determined later in the bankruptcy process.”
If your refund is too late, you can use your card issuer’s dispute or chargeback process to seek compensation. You can also explore travel insurance claims and bankruptcy claims as a last resort. According to the Department of Transportation, if an airline shuts down completely like Spirit has, you can file a “Proof of Claim” in the bankruptcy proceeding to get a possible refund, but you will likely get a partial refund, if any.
How would this affect the cost of the flight?
The closures and cancellations of Spirit Airlines are expected to increase airfares across the US.
Airline costs are set to rise in 2026 due to rising jet fuel costs and high demand. According to NerdWallet, airline costs have risen 14.9% in the past year, and customers are struggling. With Spirit ceasing all operations, there are fewer budget options than ever, and competition is decreasing in several markets, especially South Florida. Some airlines are likely to fill some routes in the coming weeks and months, but dealing with capacity and staffing gaps will take time.