Spirit Airlines said in court papers filed Monday that it was forced to permanently ground its fleet over the weekend because “recent geopolitical events have resulted in a massive and sustained increase in fuel prices.”
Although court documents do not specify the nature of these geopolitical events, jet fuel prices have risen in the two months since the start the war in Iran.
“The debtors and their advisors were looking for a capital increase and any sources of savings or liquidity, leaving no option unexplored,” the airline said. indicated in the files filed Monday in the Federal Bankruptcy Court for the Southern District of New York.
“It became clear on Thursday that sufficient additional liquidity would not be found and that there no longer existed a viable path to restructuring or continued operations.”
But Spirit waited until early Saturday to unplug your operationsstranding thousands of travelers mid-route and forcing countless others to rebook on other airlines. Many passengers said they received no warning that Spirit was sinking.
Spirit, in court papers, said it asked the Federal Aviation Administration “to order a ground stop for Spirit flights to ensure there is no accidental dispatch” at 3 a.m. Saturday.
Why then? The Spirit Airlines debtors decided that “the safest time to make this announcement was when no aircraft were in flight and all crew members who were away from their bases had sufficient time to check into a hotel,” court documents state.
“These measures have been taken to prioritize the safety of passengers and crew,” they state.
Today, Spirit is asking the authority to “take the necessary steps to terminate the operations of its fleet.”
“In particular, Spirit hereby requests permission to abandon aircraft it owns that are not already subject to a purchase agreement, as well as to sell or abandon its engines and spare parts in its possession,” the papers state.
In its official announcement, Spirit said it would automatically refund tickets purchased directly by travelers with a credit or debit card, while those who booked through third parties should contact their travel agent.
Spirit said compensation for customers who used vouchers, credits or loyalty points would be determined later as part of the bankruptcy process.
Meanwhile, some 17,000 Spirit workers are now out of work, including 5,500 flight attendants.
Spirit, one of five low-cost airlines in the United States, has struggled for years to remain profitable and declared bankruptcy twice, even as it I paid the CEO’s millions of dollars in salaries and bonuses.
In the first two months of 2026, Spirit lost $60 million — and that was before President Donald Trump ignited the current conflict with Iran.
Spirit Airlines attempted to be acquired by JetBlue several years ago. But one The federal judge sided with Biden-era Justice Department officials that such a combination defeated antitrust rules.
Friday, NBC News reported that discussions between the Trump administration and Spirit Airlines to save the company were going nowhere and that the airline could close its doors on Saturday.
Earlier, Trump said the White House had given Spirit Airlines “a final proposal” for a federal bailout to save it. But Trump also warned that he was reluctant to risk taxpayer dollars on a company that has already filed for bankruptcy twice.