Spirit Airlines said that it has "started an orderly wind-down of our operations, effective immediately" after talks with the federal government over a $500 million rescue deal stalled.
Spirit's final flight was Flight 1833, which travelled from Detroit to Dallas and landed early Saturday morning just after midnight. The airline said it flew more than 50,000 passengers over the past day and is working to get more than 1,300 crew safely home to their bases.
A spokesperson for Spirit also said the majority of the airline's employees found out about the closure primarily through media reports that they were about to lose their jobs.
The airline was scheduled to operate 277 flights Saturday, according to data from Airline Data Inc., which have now all been canceled.
"To our Guests: all flights have been cancelled, and customer service is no longer available," Spirit said in a statement on its website. "We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our Guests for many years to come."
The Wall Street Journal first reported on Friday that Spirit was preparing to shut down operations as of Saturday.
On Friday afternoon, President Donald Trump said an announcement about the airline rescue deal was possible.
When asked if the administration had decided against bailing out Spirit, Trump told reporters on Friday, "I guess we're looking at it. If we could do it, we do it, but only if it's a good deal."
"No institution's been able to do it," he continued. "I said 'I'd like to save the jobs,' but we'll have an announcement sometime today. We gave them, we gave them a final proposal."
When asked by ABC News' Morgan Norwood on Saturday why a potential government bailout deal failed, Transportation Secretary Sean Duffy said it was a "creditor issue."
He said many ideas of how the federal government could step in and help Spirit were floated, and efforts were made by Trump to finalize a deal.
"In the end, this was a creditor issue," Duffy said at a press conference held at Newark Liberty International Airport. "Again, they have the final say of whether they want to do a deal with the government. But also, from the government's perspective, we oftentimes don't have a half a billion dollars laying around in a Spirit account that we can put into a bailout of an airline."
Duffy criticized and blamed the Biden administration for blocking Spirit's merger with JetBlue calling it a "massive mistake" and saying the two airlines should have been allowed to merge.
He further added that high jet fuel prices weren't the sole contributor to the Spirit's end as it had already been struggling and battling bankruptcy prior to the start of the Iran war.
At the time, the Biden administration said it blocked the merger because the deal would reduce competition and increase fares for customers.
Duffy also weighed in on the $2.5 billion in financial relief requested by other budget carriers, saying he doesn't think it's necessary at the moment.
Duffy said Spirit has the money in reserve funds to refund travelers who booked tickets before the airline ceased operations earlier this morning.
"If you bought a ticket and hadn't flown that ticket yet, the dollars that you used to buy the ticket, those are held in reserve by Spirit Airlines," Duffy said. "And so that money is there, and so refunds will flow to the original form of payment for those who had booked a ticket. So yeah, we feel very comfortable that you will get a refund for the portion of the flight that you didn't fly."
ABC News has reached out to the White House for additional comment.
In a post on X on Saturday afternoon, Acting Labor Secretary Keith Sonderling shared the department's upcoming efforts to support Spirit workers.
Sonderling said he has spoken with Spirit CEO Dave Davis, union leaders representing pilots and flight attendants and the Transportation Department to coordinate support.
"The Department of Labor is taking ACTION to support affected workers and help them get back to work quickly," he wrote. "From immediate unemployment support to job placement and retraining, here's what [the Labor Department] is doing for displaced workers now. ... This is about getting Americans back on their feet quickly."
Sonderling said the department is deploying rapid response teams to affected hubs to help workers with filing unemployment insurance claims, giving guidance on eligibility and accessing benefits.
The department is also coordinating with major airlines and aviation employers to help get Spirit workers into new jobs as well as hosting targeted job fairs, Sonderling said. He added that the department is activating funding to help Spirit employees get training and re-skilling they may need for new jobs.
Other airlines have responded to the news, saying they will be ready to help stranded passengers in the event that Spirit shuts down.
The Department of Transportation announced that majority of the airlines will be capping tickets prices for Spirit travelers who need to rebook their cancelled flights, and some carriers have even reduced fares on high volume routes where Spirit used to operate.
American Airlines told ABC News it will offer fare caps on main cabin tickets for routes they share with Spirit.
Similarly, United Airlines said they're "preparing to support Spirit customers in the event of a shut down."
"We are ready to support customers who may be impacted if Spirit Airlines ceases operations, with a focus on helping people continue their travel plans with low-fare options," Frontier Airlines posted Friday on X.
ABC News previously reported that Spirit could run out of the cash it needs to keep operating within days, not weeks, according to sources familiar with the matter.
Spirit filed for bankruptcy for the second time last August -- having previously filed for Chapter 11 bankruptcy protection in November 2024 -- to restructure financially and "reduce its cost structure," with hopes of emerging from Chapter 11 by the spring or summer of 2026.
The soaring price of jet fuel amid the ongoing war in Iran has had widespread impact on airlines and travel expert Katy Nastro, of airfare monitoring site Going, previously told ABC News that Spirit could be out of time to try and turn things around.
"It's never a good sign to file bankruptcy to begin with, but a second within six months, even worse," Nastro said. "Spirit suggested that they were going to be able to come out of bankruptcy this time by the spring. We're in the spring now, we have higher jet fuel prices -- this is a recipe for disaster for them."
Bradley Akubuiro, a crisis expert and former Boeing spokesperson, told ABC News that losing a budget airline like Spirit will raise the floor on airfares.
"Frontier, Allegiant, and Breeze are still flying, but Spirit was the biggest, and in the markets it dominated -- Fort Lauderdale, Orlando, a lot of the Caribbean -- there isn't another carrier ready to backfill at the same price tomorrow," he explained. "The pain isn't immediate. It's structural. A fare that used to be $89 is $140 six months from now, and most consumers won't connect the two."
When airlines liquidate, they immediately cease operations without notice, which means that passengers will be stranded and employees will not show up to work.
Spirit Airlines is telling travelers to not go to the airport as all flights have been cancelled and that they will automatically issue refunds for any flights purchased through Spirit with a credit or debit card to the original form of payment. The airline said that guests who booked flights via a travel agent should contact the travel agent directly to request a refund.
Compensation for people who booked flights using any other methods, including a voucher, credit or Free Spirit points, will be determined at a later date through the bankruptcy process, the airline said.
"Unfortunately, despite the Company's efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit's financial outlook," the airline said in its statement. "With no additional funding available to the Company, Spirit had no choice but to begin this wind-down."
United Airlines announced Saturday morning that for the next two weeks, customers who were booked to travel on Spirit can get one way ticket on United flights from most cities where Spirit previously operated, including Atlanta, Chicago, Fort Lauderdale, Houston, Las Vegas, Miami, Newark, New Orleans and Orlando.
The airline says it has capped most of its fares at $199, though exceptions apply, with longer flights not priced higher than $299. Travelers will need to enter their Spirit confirmation number and verify they were scheduled to travel between May 2 through May 16 in order to be qualify for these special fares.
American Airlines has also launched a website which displays rescue fares to and from a range of domestic and international destinations, so those scheduled to travel with Spirit on those routes can rebook their travel with American.
The airline says it's also working to add additional capacity, like flying bigger planes and adding more flights on routes where Spirit used to fly, to accommodate as many passengers as possible. American says it operates at majority of the operates and routes Spirit used to serve at.
There is generally no airline assistance when it comes to helping stranded passengers after an airline shuts down operations.
For any ticketed passengers scheduled to fly Spirit or already in the middle of their trip, below are some tips from travel experts on how to navigate the situation.
Don't immediately cancel your flight, Nastro advised, adding that travelers who cancel forfeit their right to a refund. And make sure to keep all records and receipts.
If you booked with a credit card, you can dispute the charge with your credit card company and likely get the money back.
There is less protection if you booked with a debit card, but you can still contact your company to see if you can get reimbursed.
If you have travel insurance, she reminded customers to read the fine print as not all of them cover this type of scenario.
Per the Department of Transportation, customers could consider filing a proof of claim in the bankruptcy proceeding to try and get a partial refund, but the claim will be considered along with all the other creditors that the airline owes money to and you may only get a small portion of your money back.
If you're stranded, check options with other airlines that might be able to offer relief flights, fare caps or emergency fares, like they would do after a big weather event.