Spirit Airlines blamed its demise on soaring fuel costs from the Iran war|Tomas Del Coro|CC BY-SA 2.0
Budget carrier Spirit Airlines wound down its operations over the weekend, canceling all flights with immediate effect. The shutdown has left nearly 17,000 personnel jobless.
A union representing the staff, including 2,000 pilots and 5,500 flight attendants, has requested that Spirit leadership and the US government ensure they receive all compensation and benefits.
The abrupt flight cancellations left hundreds of passengers stranded across the Americas and the Caribbean.
Transportation Secretary Sean Duffy announced that carriers like United, Delta, JetBlue, and Southwest would cap fares for stranded Spirit passengers. People are also being directed to seek automatic refunds for tickets purchased via credit or debit cards.
The airline, once valued at $6 billion and profitable in the mid-2010s, has filed for bankruptcy twice and recently failed to secure a government bailout.
President Donald Trump was willing to consider a taxpayer-backed stake in the struggling carrier, but a deal never materialized since it didn’t guarantee a significant financial upside for the government.
Spirit Airlines blamed its demise on soaring fuel costs from the Iran war. CEO Dave Davis also cited liquidity shortages.
While other low-cost carriers may benefit from an influx of former Spirit customers, they’re also dealing with soaring fuel prices due to the Iran war.