Spirit Airlines ceases operations

Spirit Airlines’ recent history has marked by dramatic upswings and just as quick downfalls. Failed consolidation attempts and repeated financial distress led Spirit to where it is today. In 2022, Spirit first agreed to merge with Frontier, a fellow ultra low cost carrier, but that deal collapsed when Spirit terminated the merger agreement in July 2022 after JetBlue outbid Frontier.

A federal judge then blocked the deal between Spirit and JetBlue in January 2024 on antitrust grounds, with JetBlue walking away. After the failed mergers, Spirit’s financial problems deepened, with a first Chapter 11 bankruptcy in November 2024. The airline emerged from restructuring in March 2025, but refiled for Chapter 11 on August 29, 2025, marking its second bankruptcy in less than a year.

In recent weeks, thanks in part to the skyrocketing cost of fuel, Spirit’s position became fraught, with the airline seeking lending guarantees from the federal government. President Donald Trump appeared amenable to a $500 million rescue package, while Secretary of Transportation Sean Duffy worked to secure an airline merger partner. But in the end, the structure of the potential deal—and the fact that Spirit’s pieces are worth more than the whole—led to the cessation of operations.