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News Every Day |

With Spirit Airlines' Shutdown Imminent, American and United Jump In to Help Travelers

Spirit Airlines is preparing to close, but several major airlines say they will step into the breach to help passengers if that occurs.

American, United, and Frontier Airlines have indicated that they will try to help Spirit travelers. "Spirit Airlines is preparing to cease operations," the Wall Street Journal reported on May 1. According to WJS, Spirit was "hoping to finalize a $500 million lifeline from the government before running out of cash," but that help has not materialized.

According to Axios, a Spirit spokesperson wasn't commenting on the closure reports. But "a Spirit liquidation could leave customers with future bookings in the lurch if the airline stops flying." That's where the other airlines come in. However, according to Reuters, a final bailout proposal is on the table as the budget airline lurches toward closure.

American Airlines Says It Will Implement Fair Caps for Spirit Routes as Spirit Airlines' Stock Plunged

A Spirit Airlines airplane at Fort Lauderdale-Hollywood International Airport (FLL) in Fort Lauderdale, Florida.

Photographer: Eva Marie Uzcategui/Bloomberg via Getty Images

As news broke that Spirit's end was imminent, American told Reuters that it was "prepared to do all it can to support Spirit Airlines customers and team members," adding that it has already "immediately implemented fare caps on Main Cabin tickets for Spirit routes where we also offer nonstop service and will continue to support as many customers as possible."

According to The New York Times, the no-frills airline revolutionized air travel by focusing on low airfares with few amenities. However, a number of issues imperiled Spirit in recent years, including "high fuel prices, competition from larger airlines," The Times reported, adding that some investors opposed a government bailout because the government would have ended up owning about 90 percent of the airline.

According to The Times, when the company would stop flights was not clear. In the past, "other airlines have offered free or discounted tickets to travelers stranded by companies that abruptly shut down," wrote The Times. Spirit hasn't reported a profit since 2019, according to The Times.

However, CBS News is reporting that Spirit could cease operations as soon as Saturday, May 2. Reuters noted that a shutdown could come by Friday evening. Spirit Airlines' stock prices plunged as a result of the news, according to Barron's. However, Business Insider described the stock as being on a "rollercoaster" and taking a "wild ride" on May 1.

United & Frontier Airlines Also Released Statements as Spirit Prepared to Close

United Airlines also released a statement after news broke. That airline told Axios that it was "preparing to support Spirit customers and employees in the event of a shutdown and we'll likely have more to share later."

Frontier wrote on X that it's "ready to support customers who may be impacted if Spirit Airlines ceases operations, with a focus on helping people continue their travel plans with low-fare options."

According to CNBC, Spirit "could be forced to liquidate without a lifeline." A rise in fuel prices complicated Spirit's recovery plans, the network reported, adding that Spirit has twice filed for bankruptcy in the past year.

Spirit was a popular airline for a time. According to CNBC, "1.7 million U.S. domestic passengers" flew on Spirit over the years. However, the bare bones flight experience and extra charges turned some travelers off.

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