Spirit Airlines Shuts Down, First Major Failure of a Major US Airline in Decade

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"This is not better for travelers. This is not better for pricing. This is not better for competition.” Secretary Sean Duffy

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"Spirit Airlines, known for its ultra-low-cost flights, abruptly halted its operations over the weekend, grounding flights nationwide and leaving passengers stranded and nearly 17,000 workers unemployed.

"Axios reports that the company’s demise after 33 years in business marks the first death of a major US airline in decades and comes after two bankruptcies and a failed attempt to secure a $500 million government bailout.

"Spirit CEO Dave Davis said in a statement, “For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while driving affordability across the industry.”

"Davis cited the “sudden and sustained” rise in fuel prices in recent weeks as having left the company no other alternatives but to wind down their operations, noting that, “Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure.”

"According to Bureau of Transportation Statistics, Spirit flew about one in 33 domestic miles in the 12-month period ending in February, making it the eighth largest US carrier during the period, just behind Frontier and ahead of SkyWest.

"Secretary of Transportation Sean Duffy said the airline’s demise can be traced to a proposed merger between JetBlue and Spirit that was blocked by the Biden administration.

Biden-Buttigieg could have prevented Spirit Airlines from shutting down

But the AIRLINES and @POTUS’ administration have moved with grace together to help passengers and employees get through this and avoid disaster— Secretary Sean Duffy (@SecDuffy) May 3, 2026

"Duffy told Fox News, “They bragged and said this was a victory for U.S. travelers who deserve lower prices and better choices. This is not better for travelers. This is not better for pricing. This is not better for competition.” . . . More...