Low-cost airline entered its 2nd bankruptcy; Trump government offered around US$500 million to save company
Spirit Airlines, a North American low-cost airline, permanently closed its activities this Saturday morning (May 2, 2026).
The company canceled all flights in the United States and advised passengers not to go to the airport. On the website, in the area where customers could make reservations, there is a notice saying that Spirit Airlines is “closing all its operations”.
“It is with great regret that Spirit Airlines began the orderly closure of its operations on May 2, 2026, effective immediately. To our passengers: all flights have been canceled and customer service is no longer available. We are proud of the impact our low-cost model has had on the industry over the past 34 years and looked forward to serving our passengers for many years to come”says the official note.
The airline has accumulated billions of dollars in losses in recent years, filing for bankruptcy in 2025.
According to the newspaper, Spirit Airlines had hoped to emerge from its second bankruptcy this year as a smaller company, but those plans fell apart in recent weeks.
The (Republican Party) administration offered $500 million in federal aid, but the airline’s investors and government officials were unable to reach an agreement on how to structure a plan to save the company.
Spirit was founded in Michigan in the 1960s as a trucking company. In the 1990s, it began offering charter flights. Then, in the following decade, it began a business model based on very low costs and cheap air tickets.
Spirit’s closure marks the first airline bankruptcy, in part, because of high jet fuel prices caused by the war in Iran on February 28. Competition, the Covid-19 pandemic and a defect in some aircraft engines also hurt the company.
