The airline’s collapse is attributed to a doubling in jet fuel prices during the Iran war. Jet fuel prices climbed to about $4.51 a gallon by the end of April 2026. Spirit Airlines had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats.

Spirit Airlines declared bankruptcy in November 2024 and filed for bankruptcy protection a second time in August 2025. By that time, the airline accumulated about $7.4 billion in debt. The Trump administration proposed a $500 million financing package to help Spirit Airlines, but these efforts were unsuccessful.

Key facts:

• Spirit Airlines accounted for 5 percent of US flights at one point.
• No US carrier of Spirit’s size has liquidated in two decades.
• The airline’s restructuring plan assumed jet fuel costs of about $2.24 a gallon in 2026.
• Transportation Secretary Sean Duffy stated that reserve funds had been set up to refund customers who bought directly from Spirit Airlines.
• About 14,000 jobs are at stake due to Spirit Airlines’ collapse.

Spirit Airlines issued a statement saying, “Unfortunately, despite the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook.” This reflects the broader challenges facing the aviation industry amid rising costs.

Donald Trump commented on the situation, stating, “If we can help them, we will, but we have to come first.” A creditor close to the deal remarked, “The Trump administration made an extraordinary effort to try and save Spirit, but you can’t breathe life into a corpse.” This sentiment underscores the difficulties faced by airlines during economic downturns.

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