34 year old American Airlines Spirit closed down: All flights canceled with immediate effect, jobs of 17,000 employees at risk
West Palm Beach. America’s leading low-cost aviation service provider ‘Spirit Airlines’ on Saturday announced the complete closure of its business. The journey of this company, known for its unique advertisements and very cheap air rates, has ended after 34 years.
The company, which operates the bright yellow planes, said it has begun the process of systematically shutting down its operations with immediate effect. About 17,000 employees worked in this airline.
The airline said in a statement on its website that all its flights have been canceled and customer service is no longer available. “We are proud of the impact our ‘ultra-low cost model’ has had on the industry over the last 34 years,” the company said. We hope to continue serving passengers for many years to come.”
It told passengers they could expect a refund, but no assistance would be provided for booking travel on another airline. There were fears of closure of the company since it did not receive any financial package from the government on Friday. US President Donald Trump said on Friday that his government had made a final proposal to save this budget airline from government funds, but no agreement could be reached.
The airline was undergoing bankruptcy proceedings for the second time in less than two years amid a surge in jet fuel prices due to the Iran war. According to Marshall Huebner, the airline’s lawyer, the closure could affect about 17,000 jobs. Spirit Airlines was facing financial crisis due to rising operating costs and debt since the Covid-19 pandemic.
By the time it first filed for ‘Chapter 11’ (bankruptcy protection) in November 2024, it had lost more than $2.5 billion since the beginning of 2020. In August 2025, the company again applied for bankruptcy protection. According to court documents, the company had a debt of $8.1 billion at that time.
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