US carrier Spirit Airlines, which is often labelled pocket-friendly, has said that all of its flights have been cancelled as it started an “orderly wind-down of operations.” The development has been seen as a consequence of a potential White House bailout falling through.
“Spirit Aviation Holdings, Inc., parent company of Spirit Airlines … today regretfully announced that the Company has started an orderly wind-down of operations, effective immediately. All Spirit flights have been cancelled, and Spirit Guests should not go to the airport,” the airline said in a statement on Saturday.
Customers with tickets for future Spirit flights are entitled to full refunds if the airline goes out of business, US media reports confirmed. The low-cost flier would automatically process refunds for any flight that was purchased through the airline with a credit or debit card.
Following the announcement, major US carriers rolled out rescue-fare options for affected passengers.
A casulaty of the war in Middle East?
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Spirit Airlines has become the industry’s first casualty linked to the Iran war, after failing to secure creditor support for a US government bailout plan. The collapse of the first carrier due to a doubling in jet fuel prices during the two-month-old Iran war will cost thousands of jobs.
Spirit had reached a deal with its lenders that would have helped it emerge from its second bankruptcy by late spring or early summer. However, those plans derailed after the war triggered a spike in jet fuel prices, upending Spirit’s cost projections and complicating its bankruptcy exit.
It is a blow to President Donald Trump, who had proposed $500 million to save Spirit despite opposition from some of his closest advisers and many Republicans in Congress. No US carrier of Spirit’s size—it accounted for 5% of US flights at one point—has liquidated in two decades. Spirit helped keep fares lower in markets where it competed against major carriers.
Did Spirit Airlines shut down due to the Iran war? Refund options, rescue-fare options and more
