WASHINGTON, United States (AFP) — Low-cost United States (US) carrier Spirit Airlines said on Saturday that all of its flights have been cancelled as it started an “orderly wind-down of operations,” citing spiking fuel prices in recent weeks as a key factor.

The troubled carrier, which was looking to emerge from its second bankruptcy in a year, announced it was ceasing operations after a potential White House bailout fell through.

Spirit Airlines’ parent company, Spirit Aviation Holdings, said in an early Saturday press release that it 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,” said the company.

Spirit, which launched over 30 years ago with its bargain no-frills offering that put pressure on larger airlines, was the ninth-largest US carrier by passenger count as of December 2025, according to the Department of Transportation.

The company’s webpage displayed a message telling guests that “customer service is no longer available.” The airline said it will process refunds for purchased flights.

Jet fuel prices have more than doubled since the conflict with Iran began in February, prompting major US airlines to lower their profit forecasts, trim back on capacity growth plans or both.

Spirit’s President and CEO Dave Davis said the company in March “reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business.”

“However, the sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the Company,” Davis said in the press release.

“Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure. This is tremendously disappointing and not the outcome any of us wanted.”

President Donald Trump, who had floated organising a relief package reportedly worth $500 million to save the cash-strapped carrier, said on Friday that Spirit was given a “final proposal” for a bailout.

Talks collapsed after some bondholders rejected the plan, the Wall Street Journal and other US news outlets reported, citing sources close to the discussions.

Trump administration officials have also criticised predecessor Joe Biden’s administration, which successfully blocked a proposed $3.8 billion takeover of the carrier by JetBlue, arguing it would harm consumers.

In its statement, Spirit said there were “extensive and comprehensive efforts to restructure the business,” but the lack of additional funding meant that Spirit “had no choice but to begin this wind-down.”

Jan Brueckner, emeritus economics professor at the University of California, Irvine, told AFP last week that the fuel price surge was “the straw that broke the camel’s back.”

American Airlines said early Saturday that it was in touch with US authorities on “steps we are taking to help mitigate the impact on the communities Spirit serves and the travelling public.”

American said it was offering “rescue fares” on Spirit’s routes.

United Airlines also said it was providing “price-capped, one-way tickets from most cities where Spirit flew.”

The Association of Flight Attendants, a union representing around 5,000 Spirit employees, said it was in contact with other airlines about supporting Spirit staff.

“Every Flight Attendant in the operation will have their hotel and/or a flight to return home accommodated,” the union added, calling it the “hardest news of our lives.”

Spirit Airlines, which began offering flights in 1992, was known for its yellow-colored planes and employed just over 11,000 people as of 2024.