American budget airline Spirit Airlines announced the cessation of its operations and the cancellation of all flights after failing to secure financial support from the U.S. government.
Oil Prices Are to Blame
In a press release from its parent company Spirit Aviation Holdings, Inc., it was noted that the decision to "orderly wind down operations" was made after implementing comprehensive measures aimed at restructuring the business.
"The significant rise in oil prices and other factors putting pressure on the business have severely worsened Spirit's financial outlook," the statement said. "In the absence of additional sources of funding, Spirit had no choice but to proceed with liquidation."
In April, Spirit sought assistance from the administration of U.S. President Donald Trump. At that time, the White House chief stated that the federal government could help the airline. "I think I would really like someone to buy Spirit," Trump told CNBC. "Perhaps the federal government should help this company."
Problems Have Been Brewing for a Long Time
To be fair, Spirit's problems began long before the sharp spike in jet fuel prices. In August 2025, the company initiated bankruptcy proceedings for the second time within a year after the failure of a previous restructuring plan. The airline planned to exit bankruptcy by mid-2026 by selling some aircraft and narrowing its route network to a few key cities.
Before ceasing operations, about 100 aircraft remained in service (compared to over 210 in 2025). The fleet was primarily made up of narrow-body aircraft from the Airbus A320 family.
