Spirit Airlines, the ultra-low-cost carrier based in South Florida, announced it began an orderly wind-down of operations on May 2, 2026, effectively ceasing service that day. The airline said all flights were cancelled and customer service was no longer available, noting it had hoped to continue serving passengers after 34 years of running a disruptive low-fare model.
In recent weeks Spirit had sought a $500 million federal rescue from the White House. Negotiations with the Trump administration did not produce an agreement, and internal disagreements in the administration left the carrier without the funds it had requested. President Trump said he would like to save Spirit jobs if “a good deal” could be reached, adding, “If we can help them, we will. But we have to come first. We’re first.”
The bailout effort followed a prolonged stretch of financial strain. Spirit has filed for bankruptcy twice since 2024 while trying to slim down its operations. Rising jet fuel prices tied to the war in Iran pushed operating costs higher, and several legacy carriers shifted toward lower fares, cutting into the cost advantage that ultra-low-cost carriers depend on. Shye Gilad, a former airline pilot and McDonough School of Business professor, said low-cost airlines rely on a clear cost edge — “and they just don’t have that anymore,” limiting Spirit’s options.
Spirit had also explored a sale. In 2023 the airline accepted a $3.8 billion takeover offer from JetBlue, but the U.S. Justice Department sued to block the merger on the grounds it would hurt budget-conscious travelers. A federal judge rejected the acquisition in January 2024, scuttling that exit route.
Despite shrinking operations, Spirit helped keep fares lower on routes it served. In February its share of U.S. passengers was about 3.9%, down from 5.1% a year earlier, and analysts projected that share could drop to roughly 1.8% by May. William McGee, a senior fellow at the American Economic Liberties Project, warned that the absence of Spirit could mean higher fares for travelers even if they don’t fly the carrier, because competing airlines would have less pressure to keep prices low.
With flights cancelled and customer support halted, Spirit’s wind-down closes a 34-year chapter for a carrier that played a prominent role in popularizing the ultra-low-cost airline model.