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businesspress > Blog > Business > Spirit Airlines is Closing Following the Failure of Rescue Negotiations
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Spirit Airlines is Closing Following the Failure of Rescue Negotiations

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Last updated: May 3, 2026 1:00 am
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Published May 2, 2026
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After failing to get a $500 million (£368 million) bailout from the Trump administration, Spirit Airlines is closing its doors. The low-cost airline was negotiating a rescue agreement with the US government that would have prevented it from going out of business.

However, the carrier said on its website on Saturday that it had “started an orderly wind-down of our operations, effective immediately” with “great disappointment” after talks broke down. Flight cancellations across the United States were part of that.

Before the US-Israeli war in Iran, Spirit had just emerged from its second bankruptcy filing, but the subsequent spike in jet fuel prices sent it over the edge.In a statement released early on Saturday morning, the firm stated that all Spirit flights have been canceled and that Spirit guests should not travel to the airport.

Additionally, the airline stated that any flights booked through Spirit using a credit or debit card would be automatically refunded to the original payment method. To get a refund, travelers who used a travel agency to book their tickets should get in touch with them directly. The bankruptcy court process will ultimately determine compensation for anyone who purchased flights with a voucher, credit, airline points, or another means.

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