Spirit Airlines is nearing completion of customer refunds after abruptly shutting down operations due to financial struggles exacerbated by rising jet fuel prices. The airline had not turned a profit since 2019 and had scheduled around 4,000 flights before its closure.
Key points
Spirit Airlines is refunding customers after shutting down
The airline struggled financially and had not made a profit since 2019
Rising jet fuel prices contributed to the decision to cease operations
Spirit had about 4,000 flights scheduled until mid-May
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Spirit Airlines
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Spirit Airlines has almost finished refunding customers for flights abruptly canceled over the weekend as the company folded.
The budget airline left thousands of customers and staff stranded after deciding on Saturday to pull the plug on a business that was struggling for years, before a surge in the price of jet fuel blew a new hole in its budget.
“Unfortunately, despite the company’s best efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” the statement reads. “With no additional funding available to the company, Spirit had no choice but to begin this wind-down.”
Transportation secretary Sean Duffy, however, cast the blame for the airline’s failure on the Joe Biden administration in comments to the media on Saturday. The justice department under Biden blocked a proposed that would have joined Spirit and JetBlue.
Q&A
Why did Spirit Airlines shut down operations?
Spirit Airlines shut down due to ongoing financial struggles and a recent surge in jet fuel prices that worsened its budget issues.
How many flights did Spirit Airlines cancel before shutting down?
Before shutting down, Spirit Airlines had scheduled about 4,000 flights through May 15.
When can customers expect their refunds from Spirit Airlines?
Spirit Airlines has almost finished processing refunds for customers affected by the flight cancellations.
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“Many at the time said this was a disaster, this merger should have been allowed,” Duffy said. “And this today would indicate this is not better for travelers, this is not better for pricing, this is not better for competition – actually it’s worse.”
Duffy urged Spirit customers to stay home.
“If you have a flight scheduled with Spirit Airlines, don’t show up at the airport – there will be no one here to assist you,” Duffy said. “What Spirit Airlines is now going to do is go through an orderly liquidation process. We’ll see how that goes through the course of the next couple of days.”
Conservative critics, including Duffy, drew attention to comments from Elizabeth Warren, a Democratic senator from Massachusetts, praising the Biden administration’s blocking of the merger back in 2024. Warren said at the time that the merger would have led to “fewer flights and higher fares”.
In response to the criticism, Warren tweeted on X that Spirit collapsed over spiking oil prices, adding that the “JetBlue merger failed because a judge, appointed by Ronald Reagan, said the deal was illegal”.
“Republicans are desperate to shift blame from higher costs hitting families,” Warren tweeted.
