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Traveler arrives for Spirit Airlines flight, learns the company has shut down 02:57
Spirit Airlines announced early Saturday morning that it was ceasing operations after the budget carrier failed to secure a$500 million federal bailout.
Spirit Aviation Holdings, the airline's parent company, said in a news release that it "regretfully announced" that it had "started an orderly wind-down of operations, effective immediately."
"All Spirit flights have been cancelled, and Spirit Guests should not go to the airport," the airline said, adding that it would automatically process refunds for any flight that was purchased through the airline with a credit or debit card.
Department of TransportationSecretary Sean Duffy said Saturday that Spirit has a reserve fund to refund tickets to the original form of payment for travelers whose flights have been cancelled. People who booked with a third party, like a travel agent, should contact their point of purchase, Duffy said. The airline hasset up a websiteto answer questions regarding the shutdown process.
Some of Spirit's bondholders, including Ken Griffin's Citadel and Ares Management Corp., had opposed the deal, U.S. officials previously told CBS News. Duffy said that a "creditor issue" ultimately prevented a rescue plan.
"In March 2026, we reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business," Spirit CEO Dave Davis said in Saturday's statement. "However, the sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the Company."
Rising prices left "no choice," airline says
The Florida-based airline, which has filed twice for bankruptcy since 2024, recently faced surging costs injet fueldue tothe Iran war.
The "recent material increase in oil prices" brought on by the Iran war and "other pressures on the business have significantly impacted Spirit's financial outlook," the airline said in its statement. "With no additional funding available to the Company, Spirit had no choice but to begin this wind-down."
Duffy disputed this version of events, highlighting Spirit's bankruptcy filings.
"Spirit was in dire straits long before the war with Iran," Duffy said, adding that the airline's low-cost model "wasn't working."
The Trump administration's proposed bailout would have given the U.S. government a90% stake in the airline. Spirit's cash reserves had dwindled in recent days as talks with the government broke down, according to multiple sources familiar with the discussions. Duffy said President Trump "was like a dog on a bone trying to figure out a way to keep Spirit afloat," but that "in the end, a deal couldn't be reached."
The airline industry faces higher costs due to rising energy prices, prompting carriers to raise fares and cut unprofitable routes. A new Deutsche Bank forecast predicts U.S. passenger airlines' annual fuel bill increasing $24 billion, relative to a forecast made before the start of the Iran war. While the bank believes airlines will be able to generate $14 billion more in revenue to offset those costs, they predict airlines will earn $8.4 billion less than previously expected.
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By the time of Spirit's first bankruptcy filing in November 2024, the company had lost more than $2.5 billion since the start of 2020. In 2025, Spirit cut almost 4,000 jobs and 200 underperforming routes, ending the year with about 7,500 employees, including 2,000 pilots and 3,000 flight attendants, according to its latestannual report.
Spirit again filed for bankruptcy in August 2025 and disclosed in a regulatory filing that it had "substantial doubt" about its ability to continue operating.
"No frills" flying
Liquidating Spirit will bring an end to an airline known for its bright yellow planes and rock-bottom fares. The company's roots go back to 1983, when the airline wasspun offfrom a trucking company. Initially called Charter One, the airline rebranded in 1992 as Spirit Airlines and added more planes and routes. The company shifted to a "no frills" approach to travel in 2007, according to its union.
Trump administration officials were told that Spirit would wind down operations within 24 hours, CBS News learned Friday from people familiar with the matter. They confirmed that the White House would not make a last-ditch effort to save the airline.
When President Trump was asked about a bailout for Spirit Airlines on Friday, he said, "Well, I guess we're looking at it. If we can do it, we'll do it, but only if it's a good deal."
Davis in his statement thanked the Trump administration and Commerce Secretary Howard Lutnick for "their extraordinary efforts to try to preserve jobs and service across the country."
Spirit flew to more than 40 cities in the U.S., with a main hub at Fort Lauderdale-Hollywood International Airport in Florida, and had international routes to the Caribbean and Central and South America.
Industry reaction
Reactions to Spirit's announcement came fast on Saturday. United Airlineslaunched a webpageproviding capped fares to Spirit customers. Southwest Airlines, JetBlue and Delta Airlines also announced reduced fares for affected Spirit travelers, according to the Department of Transportation.
To alleviate concerns about higher prices, some airlines will continue to offer reduced fares on former high-volume Spirit routes for all passengers, the department said.
"This is the airline industry stepping up and trying to provide relief as Spirit is going to go through this liquidation," Duffy said.
American Airlines, which serves 70 of the 72 airports Spirit flew from, said it was "reviewing opportunities to add additional capacity," including larger aircraft and adding flights on popular routes. The airline also said it was working to provide transportation for Spirit employees who had been displaced while working.
American Airlines said it was preparing to launch a jobs page specifically for Spirit staff members. United Airlines will launch a similar effort, the Department of Transportation said.
Tommy Dorfman tore into a fellow passenger she says she caught sending transphobic texts about her.
The 13 Reasons Why actress took photos of the texts she says she saw while they were on a flight.
She captioned her message, "Why post, you may wonder? Because I can and this man is an alt-right vampire."
Tommy Dorfman is slamming a fellow passenger on her recent flight.
The13 Reasons Whyactress, who came out as transgender in 2021,shared a series of photoson Instagram showing an older man texting various contacts about his discomfort over sharing a row with a trans traveler.
"I am in the first aisle of first class. Guess what is sitting next to me? A f---ing transsexual in the midst of going from a man to a woman," the man's text message read. "Just my luck. I was hoping for a hot babe!!"
He added, "Two and a half hours of sitting next to this freak!!"
Dorfman's photos showed the passenger texting the same message to several different recipients.
The actress shared her reaction to her seatmate's cruelty in her caption.
"The audacity of this man so blatantly blasting off texts about me (sparing you the deeply misogynistic and revolting comments on our flight attendants in contrast to my freak) only reaffirms the choices I've made for myself to feel safe and comfortable in my body and spirit," she wrote. "This does come at the cost of safety and comfort in the world, especially in America, and that's not without consequence internally and externally. I am lucky to have the life I have, the ability to fly freely (for now), and even post s--- like this."
Dorfman also reflected on her appearance. "Objectively, I know I'm not 'passing' and I'm 'bricky' and 'clocky,' but passing hasn't been the point for me, nor should it be for any trans person," she wrote. "We are all allowed to evolve in any way that feels true, and that evolution can expand and contract. It's always been about alignment and autonomy for my own comfort, not the comfort of others or the expectations of society."
In one of the photos, the passenger received responses from a contact named Samantha, who wrote back, "Just remember many people you love are LGBTQ+ and this country sucks for them right now. Be kind!"
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Dorfman gave Samantha a shout-out at the end of her caption. "And why post, you may wonder? Because I can and this man is an alt-right vampire AND because Samantha deserves her flowers," she wrote.
TheJane the Virginactress also shared a video of the passenger texting another contact, "The stewardess in the first-class cabin is hot as hell!!!! Offsets the freak!!"
In another one of the images, a recipient named Dave joked about the man's request for "a hot babe."
"You got one," Dave wrote. "A brand-new one!"
Dorfman received an outpouring of support in the comments section of her post, including fromAmanda Seyfried, who wrote, "Scared and dumb, all of 'em 'cept Sam."
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Actress Pauline Chalamet added, "Whaaaat. The f---. I love you, Tommy."
Kaia Gerber commented, "Loving Samantha."
Ellie Gouldingchimed in, "What a sad, deranged, troubled person. I'm angry. Sending you love."
Read the original article onEntertainment Weekly
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