Spirit Airlines cancels all flights due to fuel crisis

US-Based Budget Carrier Spirit Airlines Announces Cancellation of Flights Amid Financial Struggles

Spirit Aviation Holdings, Inc., the parent company of US-based budget carrier Spirit Airlines, has announced that all its flights have been cancelled as it begins an “orderly wind-down of operations.” The move comes after a potential White House bailout fell through, leaving thousands of jobs at risk.

According to the airline’s statement, Spirit had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats. However, due to a doubling in jet fuel prices during the ongoing Iran war, the carrier has been unable to sustain its operations.

Spirit had reached a deal with its lenders that would have helped it emerge from its second bankruptcy by late spring or early summer. However, those plans were derailed after the US war on Iran triggered a spike in jet fuel prices, upending Spirit’s cost projections and complicating its bankruptcy exit.

The White House had proposed $500m to help Spirit, but talks hit an impasse over the financing package. Transportation Secretary Sean Duffy stated that he had tried to get many airlines to buy Spirit, but found no takers.

Spirit’s collapse is a significant blow to US President Donald Trump, who had proposed the rescue package despite opposition from some of his closest advisers and many Republicans in Congress. The airline’s restructuring plan assumed jet fuel costs of about $2.24 a gallon in 2026 and $2.14 in 2027, but prices had climbed to about $4.51 a gallon by the end of April.

The airline’s collapse also highlights the impact of the Iran war on the aviation industry, with many airlines increasing prices or cutting flights due to high jet fuel costs. German airline Lufthansa recently cancelled 20,000 flights, while Indian carrier Air India has increased fuel surcharges and cut 100 flights a day across domestic and international routes.

The situation remains fluid as Spirit’s board meeting had ended without an agreement to rescue the company. The airline’s customers and employees are now facing uncertainty about their future employment.

Source: Al Jazeera