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Spirit Airlines Begins Orderly Wind-Down, Cancels All Flights

A jet-fuel price shock linked to the Middle East war erased the cash runway the low-cost carrier needed.

Overview

  • Spirit Airlines, which announced the step Saturday, cancelled all flights and told customers to stay away from airports.
  • CEO Dave Davis blamed a jet-fuel surge tied to the Middle East war that doubled costs since late February and left the airline short of the hundreds of millions it needed despite a March restructuring plan.
  • The White House explored a $500 million rescue using government warrants, yet the effort did not produce a deal.
  • The company said it will issue refunds for purchased tickets, though its website now says customer service is unavailable.
  • American and United said they will offer discounted fares on overlapping routes and help Spirit crews get home as the ninth-largest U.S. carrier prepares to wind down.