Overview
- Spirit said it is winding down immediately, canceled all flights, told customers not to go to the airport, and will automatically refund tickets bought directly from the airline.
- Talks with the White House for a $500 million lifeline fell apart as key bondholders resisted terms that included warrants giving the government up to a 90% stake.
- A sharp rise in jet-fuel prices linked to the Iran conflict doubled costs since February 28 and wrecked Spirit’s plan to exit Chapter 11, with company lawyers warning cash would last only days.
- United, American and Frontier said they are preparing to assist affected travelers and employees, and analysts warn fares could rise where Spirit’s exit reduces competition.
- Cirium estimates about 9,000 Spirit flights were scheduled for May, which means roughly 60,000 people a day now need alternate seats and could face higher prices or delays.