Spirit Airlines has abruptly ceased flying, ending a run that made the Florida-based carrier one of the best-known names in U.S. budget travel. According to multiple reports, the airline shut down after failing to secure a $500 million federal rescue package, with Spirit Aviation Holdings saying it had begun an immediate and orderly wind-down of operations.

The collapse brings an end to more than three decades of service and follows a long period of financial strain. Axios reported that Spirit employed about 17,000 staff and contractors, while other outlets said the company had already been through two bankruptcies since 2024. The airline’s troubles had deepened as higher fuel costs and a weaker operating environment made recovery increasingly difficult.

Passengers were left scrambling as flights were cancelled across the network. CBS News reported that Spirit told travellers not to go to airports and said it would automatically refund tickets bought directly with credit or debit cards. The company’s website was also said to have stopped offering customer service, underlining how quickly the shutdown took hold.

The demise of Spirit is being treated as a significant shock for the industry. Axios said it was the first major U.S. airline shutdown in decades, while The Daily Beast reported that the carrier’s collapse could help push fares higher at a time when broader geopolitical tensions have already lifted fuel and travel costs. For creditors, bondholders and rival carriers, the consequences are likely to unfold well beyond the immediate grounding of aircraft.

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Source: Noah Wire Services