Spirit Airlines Grounds All Flights, Begins Shutdown Amid Fuel Crisis
Al Jazeera English
Spirit Airlines has canceled all flights and begun an orderly shutdown after a White House rescue plan failed and fuel prices doubled due to the Iran war. The collapse eliminates a 5% share of U.S. domestic capacity and is a political blow to President Trump, who pushed a $500 million bailout. Other carriers, including Lufthansa and Air India, are also cutting flights amid the fuel crisis.
U.S. budget carrier Spirit Airlines announced on May 2 that it is canceling all flights and commencing an immediate “orderly shutdown” after a White House rescue plan fell through. “All Spirit flights have been canceled; passengers should not go to the airport,” the airline said in a statement.
According to data from Cirium, Spirit had planned to operate 4,119 domestic flights between May 1 and May 15, providing 809,638 seats. However, jet fuel prices surged from an estimated $2.24 per gallon in 2026 to $4.51 per gallon by the end of April, making operations unsustainable without fresh capital.
Spirit had reached an agreement with creditors to exit its second bankruptcy by late spring or early summer, but the plan collapsed when the Iran war sent fuel costs soaring. The airline once held a 5% share of the U.S. domestic market, helping keep fares low in many competitive markets. Spirit’s collapse is a major blow to President Donald Trump, who proposed a $500 million bailout despite opposition from close advisors and Republican lawmakers.
Transportation Secretary Sean Duffy said efforts to find another carrier to buy Spirit were unsuccessful. “No one wanted to buy it,” he stated. One close creditor observed: “The Trump administration made an extraordinary effort to save Spirit, but you can’t breathe life into a corpse.”
The Iran war-driven fuel crisis is also affecting other airlines: Germany’s Lufthansa canceled 20,000 flights, and Air India increased fuel surcharges and cut 100 flights per day.
