Spirit Airlines has nearly finished refunding customers after abruptly ceasing operations over the weekend, leaving thousands of passengers and staff stranded. The budget airline announced on Saturday that it was shutting down, citing financial troubles exacerbated by a surge in jet fuel prices.
The airline had scheduled roughly 4,000 flights through 15 May, according to Reuters. Spirit has not turned a profit since 2019, and after two bankruptcy filings, it attempted unsuccessfully to restructure. In a statement, the company said the rise in oil prices resulting from the US-Israeli war on Iran dealt the final blow, leaving it with no additional funding.
US Transportation Secretary Sean Duffy blamed the Biden administration for the collapse, pointing to the Department of Justice's decision under Biden to block a proposed merger between Spirit and JetBlue. “Many at the time said this was a disaster, this merger should have been allowed,” Duffy said, adding that the situation is worse for travellers and competition.
In response, Democratic Senator Elizabeth Warren tweeted that the airline failed due to spiking oil prices, and noted that a judge appointed by Ronald Reagan had ruled the merger illegal. “Republicans are desperate to shift blame from higher costs hitting families,” she wrote.
Duffy advised customers with future bookings: “Don’t show up at the airport – there will be no one here to assist you.” He confirmed that Spirit would undergo an orderly liquidation process.
