Spirit Airlines announced early Saturday it is ceasing operations effective immediately after negotiations for a federal government bailout failed to produce a deal.
“It is with great disappointment that on May 2, 2026, Spirit Airlines started an orderly wind-down of our operations, effective immediately,” the carrier said in an online statement early Saturday morning. “To our Guests: all flights have been canceled, and customer service is no longer available.”
The airline expressed pride in its ultra-low-cost model that operated for 34 years. “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 statement continued.
The carrier had been seeking a $500 million lifeline from the federal government, but the deal could not be finalized in time due to financial complications, according to the Wall Street Journal.
In the days leading up to the announcement, Spirit had been responding to customers concerned about upcoming trips on social media in an seemingly optimistic manner despite reports of the looming shutdown.
“The most important thing to know is that Spirit continues to operate and offer high-value travel options,” the airline wrote in response to many customers.
President Donald Trump said earlier Friday that the administration had given Spirit Airlines a final bailout proposal to aid the beleaguered carrier.
“We’re looking at Spirit. If we can help them, we will, but we have to come first,” Trump said. “If we could do it, we’d do it, but only if it’s a good deal.”
Sources later said the administration had proposed $500 million in financing in exchange for warrants equivalent to 90% of Spirit’s equity. There had been disagreements inside the administration over whether and how to fund the bailout, the report said, citing people familiar with the matter.
Not all Spirit bondholders were on board with the deal, the report added.
Major carriers are making plans to assist affected passengers.
United Airlines and American Airlines said they are ready to help Spirit passengers. American also said it has capped ticket prices on routes where it directly competes with Spirit to help limit disruptions.
“To help customers whose travel may be disrupted, we immediately implemented fare caps on Main Cabin tickets for Spirit routes where we also offer nonstop service,” American said.
Frontier Airlines said it is also prepared to accommodate travelers, emphasizing low-cost options if Spirit ceases operations.
“We are ready to support customers who may be impacted if Spirit Airlines ceases operations, with a focus on helping people continue their travel plans with low-fare options,” Frontier wrote on social media.
Spirit declined to comment on ongoing discussions.
“Spirit is operating as usual,” a company spokesperson said in an email.
Senator Elizabeth Warren praised the decision on social media, calling it “a Biden win for flyers.”
“I’ve warned for months that a JetBlue-Spirit Airlines merger would have led to fewer flights and higher fares,” she wrote. “The Department of Justice Antitrust Division and Department of Transportation were right to stand up for consumers and fight against runaway airline consolidation. This is a Biden win for flyers!”