PHILADELPHIA (KYW Newsradio) — After more than 30 years, Spirit Airlines is ceasing all operations. The move came after a last-minute bailout deal with the Trump administration fell through.
The Trump administration had considered a government bailout for the cash-strapped business to keep it from going under, but a deal was not reached. Of the potential bailout, U.S. Transportation Secretary Sean Duffy said Saturday, “we often times don't have half a billion dollars laying around."
President Donald Trump had floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years with jet fuel prices soaring because of the Iran war.
As late as Friday afternoon, Trump had said “we're looking at it" and had given the budget carrier a “final proposal” for a taxpayer-funded takeover.
Spirit has struggled financially since the COVID-19 pandemic, weighed down 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.
The ultra-low budget airline operated out of Philadelphia and Atlantic City International airports.
“We understand this may be unexpected and stressful for many travelers,” read an alert banner on Atlantic City International’s website Saturday morning. “Passengers with Spirit Airlines reservations should not come to the airport, as there will be no Spirit representatives onsite to assist.”
The sudden shutdown impacted many passengers, like Jessica, who was at PHL on Saturday ahead of her previously scheduled Spirit flight.
“I am quite annoyed,” she told our newsgathering partners at NBC10. “I wish they would have let us know a little bit sooner. We paid like $1,000, and we don’t know what we are going to do at this point.”
“We’re debating on going home. I am debating on just trying to book something here. I am not really sure at this point. I was just sitting down, trying to weigh out my options.”
On Spirit’s website, the airline said that while it can’t book you a new flight, it will “automatically process” refunds, with funds going back to your credit or debit card within about a week.
If you booked through a travel agent, you should contact the agency to try to get your money back.
As for those who used airline vouchers, a statement on Spirit’s website said those refunds will be processed in bankruptcy court.
Other airlines like Frontier, JetBlue and United have offered discounted “rescue fares” to Spirit customers who were stranded.
ACY said the following flights are available:
- Allegiant Air currently operates nonstop service to Fort Lauderdale, Florida; Orlando/Sanford, Florida; St. Petersburg/Clearwater, Florida; Punta Gorda, Florida; and Myrtle Beach, South Carolina (begins May 21).
- American Airlines one stop service to over 80 destinations via a luxury motor coach through Philadelphia International Airport.
- New service from Breeze Airways begins next week, with nonstop service to Charleston, South Carolina; Raleigh/Durham, North Carolina (begins June 11); and Tampa, Florida (begins July 1).
Spirit flew about 1.7 million domestic passengers in February, roughly half a million fewer than during the same month a year earlier, according to aviation analytics firm Cirium. Spirit also has sharply reduced its capacity, with about half as many seats available this month than in May 2024.
