Spirit Airlines shuts down as company says it can’t keep up with higher oil prices

Spirit Airlines, a prominent ultra-low-cost carrier known for its irreverent advertising and deep discount fares, has announced it is ceasing operations after 34 years. The airline began an orderly wind-down of its operations, effective immediately, canceling all flights and suspending customer service. High oil prices, exacerbated by the war with Iran, were cited as the primary reason for the shutdown, making it impossible for the company to continue operating. This marks Spirit Airlines' second bankruptcy filing in less than two years, with the company having accumulated significant debt and losses since 2020. The U.S. Department of Transportation stated that a reserve fund is available for customers who purchased tickets directly from the airline, while those who bought through third parties must seek refunds from those vendors. Other airlines, including United, Delta, JetBlue, and Southwest, are offering assistance to stranded Spirit passengers and employees. The airline's collapse is expected to impact approximately 17,000 jobs and reduce competition in the airline industry, potentially leading to higher airfares for consumers, particularly affecting budget-conscious travelers in markets where Spirit had a strong presence. The Trump administration had considered a government bailout, but a deal was not reached. The White House has attributed Spirit's financial difficulties partly to the Biden administration's policies, including the opposition to a proposed merger with JetBlue in 2023.