Spirit Airlines, the US low-cost carrier notorious for its bright yellow planes, ceased operations early on Saturday after running out of cash and failing to secure a rescue deal with the Trump administration. The airline announced it had started an orderly wind-down of its operations, cancelling all flights and closing customer service.
US Transportation Secretary Sean Duffy announced measures to assist affected passengers, including agreements with major airlines such as United, Delta, JetBlue and Southwest to cap ticket prices for Spirit customers rebooking cancelled flights, subject to confirmation numbers and proof of payment. American and Delta will offer reduced fares on high-volume Spirit routes, while Allegiant has frozen fares on overlapping routes and Frontier is offering a 50% base-fare reduction.
The collapse leaves about 17,000 employees, including 2,000 pilots and 5,000 cabin crew, stranded. Duffy said most major carriers will extend travel pass benefits and spare seats to Spirit staff needing to return home, and that American and United would launch websites to facilitate preferential employment interviews for Spirit workers.
Spirit had struggled with debt and bankruptcy, shuttling in and out of proceedings twice in recent years. The sharp rise in jet fuel prices since the US-Israel war on Iran sealed its fate. The Trump administration had proposed taking a 90% stake to prevent the collapse, but bondholders rejected the plan. Efforts to find a buyer, including talks with JetBlue and American, failed.
The International Association of Machinists and Aerospace Workers blamed the collapse on corporate mismanagement and called for workers to receive full severance and back pay. Duffy predicted a stronger competitive market and ruled out government bailouts for other struggling low-cost carriers, noting they have access to private markets.
