Lowcoster Spirit has announced that it will cease operations immediately. How did he explain it?

Spirit Aviation, which has been trying to restructure its business for a year and a half, announced on Ma. 2 that it would immediately wind down its operations. This is the only way out amid a significant rise in oil prices and lack of additional sources of financing, it explained.

Spirit "regretfully" announced it was ceasing operations. "All Spirit flights have been canceled and passengers should not travel to the airport," said its statement released Saturday, Ma. 2.

Despite the company's efforts to restructure its business, the recent significant increase in oil prices and certain other factors, have significantly impacted its financial prospects.

"In the absence of additional funding, Spirit had no choice but to begin this wind-down," she wrote in a press release.

The Wall Street Journal (WSJ) reported about this possibility the day before, citing sources. The publication explained it by the failure of negotiations with the U.S. government to provide financial assistance to the low-cost carrier. Against this background, Spirit quotes collapsed on May 1 in over-the-counter trading by 70%, but at the end of the session they fell by 25%.

Spirit is a pioneer in low-cost transportation. But its business model has proven insufficient to cover its significant debt obligations, the WSJ noted. In recent years, the low-cost carrier has faced increasing competition from large carriers offering cheap tickets, soaring labor costs and engine problems that have forced dozens of its planes to stop flying.

The company had planned to improve its financial position by merging with Frontier Airlines or JetBlue, but talks have stalled.

That prompted the company to file two consecutive Chapter 11 bankruptcy petitions under U.S. Bankruptcy Law, which allows a company to continue operating while restructuring debts.

In March 2026, Spirit agreed with bondholders on a restructuring plan that allowed it to resume operations, but "the sudden and sustained rise in fuel prices in recent weeks ultimately left us with no choice but to implement an orderly wind-down of the company's operations," said CEO Dave Davis (quoted by the company).

He said the lowcoster needed "hundreds of millions of additional dollars of liquidity to keep the business going, which Spirit just doesn't have and we couldn't get."

"It's extremely disappointing and not the result any of us wanted," Davis said.

Payments to creditors will be determined as part of the liquidation, the company said in a statement.

Spirit and several other low-cost carriers have asked the U.S. government for $2.5 billion in financial assistance, WSJ reported on April 27. According to the newspaper, Spirit additionally requested $500 million from the U.S. government, but failed to secure its support.

In turn, CNBC sources said that last month the administration of U.S. President Donald Trump offered Spirit a $500 million loan in exchange for a stake of up to 90% in the airline. This was not accepted by the holders of its bonds, the channel pointed out.