NEW YORK : Spirit Airlines, one of the largest low-cost carriers in the United States, announced on Saturday that it will immediately ground all flights and suspend customer service, citing skyrocketing jet fuel prices and deepening financial distress.
In a statement posted on its website, the 34-year-old airline confirmed that all flights have been canceled effective immediately. The abrupt shutdown follows a sharp escalation in tensions between the US, Israel, and Iran, which has driven jet fuel prices to nearly double over the past two months.
As of December 2025, Spirit was the ninth-largest airline in the US by passenger numbers. However, the carrier had already been struggling financially and was attempting to emerge from bankruptcy for the second time in just two years. Company executives had pinned hopes on a restructuring plan, but the sudden fuel price surge has now eliminated any path to recovery.
“The continuous increase in fuel prices in recent weeks has forced the company to close in an orderly manner,” said Dave Davis, president and CEO of Spirit Airlines. Davis previously indicated that a restructuring plan had been developed with bondholders, but the volatile market conditions ultimately proved insurmountable.
US Transportation Secretary Sean Duffy said affected passengers will be offered discounted tickets on other airlines for a limited time. He also advised travelers to contact their credit card companies or travel insurance providers directly to seek refunds.
Spirit’s collapse marks one of the most dramatic airline failures in recent US history, underscoring how geopolitical instability and fuel cost volatility can swiftly upend even established
carriers.
