Spirit Airlines is the latest business to go under in response to external pressures on the global economy.
The airline, which has been operating for the last 34 years, has been forced to shut down operations due to rising jet fuel costs - leaving 15,000 members of staff laid off.
Spirit Airlines ceased operations on Saturday 2 May with immediate effect, following the collapse of rescue negotiations with the Trump administration. The airline had been seeking a $500 million (£368 milllion) US Government bailout to avoid closure, but the discussions broke down, leaving the airline with no feasible path forward.
In a statement posted on their website, Spirit expressed "great disappointment" while confirming it had began "an orderly wind-down of our operations, effective immediately". The airlines sudden announcement revealed that all of their flights had been cancelled, with customer service no longer available. Some passengers arrived for their flight on Saturday only to find out they weren’t going to depart, while workers learned overnight that they were out of jobs.
The collapse comes as rising jet fuel prices, a consequence of the US-Israel military campaign in Iran, delivered a fatal blow to the airline which was already fighting for survival. Spirit had been working through its second bankruptcy filing in recent years when the conflict commenced, sending aviation fuel costs soaring upward. Spirit has struggled financially since the COVID-19 pandemic, affected by rising operating costs and growing debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had lost more than $2.5 billion since the start of 2020. The budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion in debts and $8.6 billion in assets, according to court filings.
Since US and Israeli strikes commenced at the end of February, jet fuel prices have doubled, with fuel expenses representing up to 40 per cent of airline operating costs. Spirit Airlines had been attempting to restructure during bankruptcy proceedings, reducing their fleet size and cutting back on routes, but the sudden fuel crisis proved too difficult to overcome.