Financially-troubled US low-cost carrier Spirit Airlines has shut down, its fate sealed by soaring fuel costs.
The 34-year-old airline with its distinctive yellow planes was a favourite with bargain hunters in the US but it was unable to seal a USD500 million federal bailout.
The Florida-based airline has lost billions of dollars during the past few years and had filed for bankruptcy protection in 2024 and again last year.
Low-cost carriers have long struggled in the US, and the fuel price spike as a result of the Iran attack as Spirit has faced intense competition on its most important routes, and rising aircraft and labour costs.
It is the first major US carrier to shut in 25 years and its grounding stranded thousands of passengers.
. . . AA/UA Help
American and United Airlines are supporting impacted passengers. AA has rescue fares on NK routes where it also offers nonstop services and is reviewing opportunities to add additional capacity.
UA is offering those with cancelled NK flights price-capped, one-way tickets from most cities the airline flew, most of these less than USD199, available for travel 02-16 May.
A proposed Trump administration bailout would’ve given the US government a 90% stake in the airline with spare seats used by members of the military, say some reports.
. . . No Deal
US Transportation Secretary Sean Duffy says a deal couldn’t be reached and it came down to a ‘creditor issue’.
Duffy says that Spirit has a reserve fund to refund tickets to the original form of payment for travellers whose flights have been cancelled.
People who booked with a third party, like a travel agent, should contact their point of purchase, CBS reports.
NK has a website to answer questions on the shutdown process. A Deutsche Bank forecast predicts airlines’ annual fuel bills increasing USD24 billion, relative to a forecast made before the Iran war and they can only recover about two thirds of that from higher ticket prices.
