Spirit Airlines May Cease Operations Within Hours: What to Know

Spirit Airlines could soon be flying into the sunset for good.

According to a new report from the Wall Street Journal, the budget airline is preparing to cease all operations after failing to secure the funds necessary to keep it running. This after the government offered a $500 million loan to keep it afloat.

As of Friday, May 1, the airline told Yahoo Financethat it’s “operating as usual,” but that may not last. Per CBS News, Spirit could cease operations as soon as Saturday, May 2.

Inside Spirit Airlines’ Money Woes

The airline first filed for Chapter 11 in November 2024, before filing again in March 2025. A proposed merger with JetBlue was also blocked by a federal judge in 2024.

With Spirit now in its second bankruptcy in less than a year, the airline’s lawyer, Marshall Huebner, said in court on April 23 that the airline’s money “is not going to last for very much longer,” per CNBC

While the airline did expect to get out of bankruptcy by this summer, an increase in fuel prices amid the war between the United States, Israel, and Iran added to the financial burden.

All this left Spirit in desperate need of a lifeline.

Possible Government Bailout

That possible lifeline came in April, when the Trump administration offered a $500 million bailout.

The deal could have given the government up to 90% stake in the airline, though WSJ reports there were disagreements within the administration on how to fund the bailout, while Spirit bondholders weren’t all on board with the plan either.

On Friday, Trump said a “final” proposal has been given to Spirit.

“If we could do it, we’d do it, but only if it’s a good deal this weekend, because they haven’t gotten a deal looking at it,” he said. “I said I’d like to save the jobs, but we’ll have an announcement sometime today...We gave them a final proposal.”

What Happens If Spirit Shuts Down?

According to CNBC, United Airlines said the carrier is “preparing to support Spirit customers and employees” should the shutdown occur. WSJ also reported that the White House reached out to other airlines for similar assistance should all Spirit’s passengers suddenly find themselves stranded.

As for how passengers can prepare for a potential shutdown, both Yahoo Finance and travel blog View from the Wing have some suggestions on what to do next.

Flyers are being urged to seek alternative travel arrangements, if possible, and sooner rather than later.

Both outlets recommend booking travel with a credit card that offers travel insurance, which often includes reimbursement for cancellations and delays. They also suggest that passengers dispute charges with their credit card companies if their flights are canceled.

The U.S. Department of Transportation says that while “bankruptcy law is complicated and can affect your right to a refund,” adding that the company “may be temporarily prohibited from providing refunds and/or vouchers – for example, to conserve assets.”

CNBC points out, however, that the DOT also says, “If an airline or ticket agent that has filed for bankruptcy refuses to refund you for a flight that has been canceled and you used a credit card to purchase your ticket, you may be entitled to a credit from your credit card company under the Fair Credit Billing Act.”

As Men’s Journal also pointed out, passengers should also download their boarding passes and keep a physical record of confirmation numbers and tickets, as the airline’s website and app may go offline.