Spirit Airlines is closed. What now?

Spirit Airlines announced over the weekend that it will cease all operations permanently, effective May 2. All Spirit flights were immediately cancelled, leaving thousands of passengers stranded and uncertain about future travel plans.

Here’s what you should know about the Spirit Airlines collapse, what happens next and what you can do now.

Why did Spirit Airlines collapse?

Spirit Airlines simply ran out of money. Years of financial losses and two bankruptcies since 2024 have been compounded by rising jet fuel costs linked to the war in Iran. According to CNBCThe airline was in negotiations with the Trump administration to secure a $500 million government bailout, but the plan was rejected, forcing the airline to close its doors on Saturday.

“For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while promoting affordability throughout the industry,” said Dave Davis, Spirit’s CEO. Announcement of the airline’s closure (PDF). “Sustaining the business has required hundreds of millions of additional dollars in liquidity that Spirit simply does not have and has been unable to obtain. This is extremely disappointing and not the outcome that any of us wanted.”

How many people were affected?

It’s unclear exactly how many travelers were affected by Spirit Airlines’ closure, but news reports indicate that thousands of passengers were stranded mid-flight or had their flights cancelled, causing major disruptions at Spirit hubs like Orlando and Fort Lauderdale.

Spirit said that 17,000 direct and indirect employees lost their jobs due to this closure.

What should you do now if your flight is cancelled?

Spirit Airlines said it aims for an “orderly liquidation” that includes canceling all flights and customer service operations. If you’re stuck in limbo due to canceled flights, don’t go to the airport. If you need to fly right away, check other airlines for limited-time rescue fares. You can use your Spirit Airlines confirmation number and proof of purchase to rebook with another airline as soon as possible.

The National Consumers Association has provided some of these Tips for affected flyersincluding keeping all booking information, receipts and records for a potential bankruptcy claim or refunds (more on that below). NCL also recommends monitoring your accounts for refunds and checking and utilizing your travel insurance policy Maximum or reduced air ticket price When rebooking flights.

“Not all Spirit customers should assume that a refund will appear automatically,” said John Breault, vice president of public policy, communications and fraud at NCL. “When an airline suddenly shuts down, it’s up to travelers to take proactive steps to have the best chance of getting their money back.”

Can you get a refund for a canceled Spirit flight?

Yes. If you purchased your ticket directly through Spirit Airlines using a debit or credit card, the company said it will automatically refund your ticket costs. If you booked through a travel agent, contact your agent directly for a refund.

If you booked your tickets using vouchers, credits or loyalty points, the refund process will not be immediate, and Spirit said it may not result in a full refund. According to Spirit, compensation “will be determined at a later date through the bankruptcy process.”

If your refund is significantly delayed, you can use your card issuer’s dispute or chargeback process to get compensation. You can also explore travel insurance claims and bankruptcy claims as a last resort. According to the Ministry of TransportIf an airline liquidates completely as Spirit did, you may be able to file a “proof of claim” in bankruptcy proceedings for a potential refund, but you will likely get only a partial refund, if any.

How might this affect airfare costs?

The closure of Spirit Airlines and the cancellation of all flights is expected to increase flight prices across the United States.

Airline ticket prices will rise in 2026 due to higher jet fuel costs and higher demand. According to NerdWalletAir travel costs have risen 14.9% over the past year, with customers bearing the brunt. With Spirit ceasing all operations, budget options are fewer than ever, and competition is shrinking in many markets, especially South Florida. Other airlines are likely to fill some routes in the coming weeks and months, but addressing capacity and staffing gaps will take time.