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Spirit Airlines Ceases Operations Amid Oil Price Surge and Failed Bailout
Confirmed
In Short: Spirit Airlines, known for its low-cost model, announced it is going out of business after 34 years, citing high oil prices due to the Iran war as the primary reason.
Spirit Airlines, an airline that revolutionized the industry with its discount fares and irreverent ads, announced on Saturday that it is ceasing operations after 34 years.
The company, which had previously filed for bankruptcy twice, stated that rising jet fuel costs made it impossible to continue operations.
U.S. Transportation Secretary Sean Duffy said that Spirit had a reserve fund for customers who bought directly from the airline to receive refunds, and major carriers like United, Delta, JetBlue, and Southwest were offering $200 one-way flights for those with Spirit confirmation numbers.
President Donald Trump had proposed a bailout for the airline, but it failed, and there were no last-minute efforts to save the company from shutting down.
The closure of Spirit Airlines is expected to affect commercial aviation, potentially leading to higher fares and forcing passengers to rebook their flights.
Background
Iran, officially the Islamic Republic of Iran, and historically known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the northeast, Afghanistan to the east, Pakistan to the southeast, and the Gulf of Oman and the Persian Gulf to the south.
What's confirmed
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- Spirit Airlines announced it is going out of business after 34 years, saying Saturday it has started winding down operations.
- Spirit Airlines, an impish upstart that shook the industry with its irreverent ads and deep discount fares, announced Saturday that it has gone out of business after 34 years.
- Although Spirit had gone bankrupt twice before, the company said high oil prices, which have been rising because of the war with Iran, made it impossible to stay aloft.
- “We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our guests for many years to come,” Spirit’s announcement said.
- U.S. Transportation Secretary Sean Duffy said Saturday that Spirit had a reserve fund set up for customers who bought directly from the airline to get refunds.
- Duffy said United, Delta, JetBlue and Southwest were offering $200 one-way flights for people who had Spirit confirmation numbers and proof of purchase for a limited time.
- Spirit said in a statement it was working to get more than 1,300 crew to their home bases and that the final Spirit flight landed at Dallas Fort Worth International Airport from Detroit Metropolitan Airport.
- President Donald Trump had floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years with jet fuel prices soaring because of the Iran war.