Spirit Airlines shuts operations amid rising jet fuel cost; US DOT steps in to provide relief to customers, staff

Sean Duffy, Secretary of the US Department of Transportation (DOT), on Saturday (local time), announced a series of measures that the department is taking to help Spirit Airlines' customers and its workforce.

In a post on X, Duffy wrote, "In coordination with our airline partners, we’re taking ACTION to bring relief to Spirit customers and its workforce. From capped ticket prices for flyers who need to rebook to employees looking for job opportunities, there’s a lot of information you should be aware of."

His remarks came as US budget carrier Spirit Airlines announced on Saturday that it is shutting down operations, effective immediately. The company had been reeling under the weight of rising jet fuel prices as a consequence of the US-Iran war, which started in late February, following which Tehran shut the Strait of Hormuz.

How is DOT helping Spirit Airlines customers and workforce?

Elaborating in his post, Duffy wrote, "United, Delta, JetBlue, & Southwest are all capping ticket prices specifically for Spirit customers who now need to rebook cancelled flights." He added that to access these special prices, individuals will need to provide, at a minimum, a Spirit flight confirmation number and proof of payment. He noted that individuals should check each airline for additional specifics.

For passengers who were worried about airfares, Duffy noted that Delta and American Airlines are offering reduced fares on high-volume Spirit routes. He added, "Allegiant has also committed to freezing fare prices across routes that overlap with Spirit. To support impacted travelers, Frontier is offering up to 50% off base fares across its network until May 10."

In terms of employee support, the DOT Secretary said that most major US airlines are offering travel pass benefits and spare jump seats to Spirit Airlines' pilots, flight attendants, and other employees who need to return home. Additionally, these airlines are also giving Spirit staff priority interview opportunities to speed up hiring.

Both American Airlines and United Airlines are setting up dedicated microsites to help Spirit employees continue their careers in aviation.

Duffy shares update on compensation rules

Sharing a refresher on compensation rules, Duffy said that, as per the airline's guidelines, it will automatically process refunds for flights that were purchased using a credit or debit card.

Separately, ticket holders can also:

1. Contact your credit card company: If you paid by credit card, you may be protected under the Fair Credit Billing Act. Ask your issuer for a chargeback for services not provided.

2. Check your travel insurance: Contact your insurer to see if your policy covers “insolvency” or “service cessation.”

3. File a bankruptcy claim: You can submit a formal “proof of claim” with the bankruptcy court. This process may take time and could result in only a partial refund.

Spirit Airlines ceases operations

Spirit Airlines, a once-disruptive low-cost carrier that shook the industry with its irreverent ads and deep discount fares, announced on Saturday that it has gone out of business after 34 years. The airline, which once operated hundreds of flights daily and employed nearly 17,000 people, said that it had "started an orderly wind-down of our operations, effective immediately."

The low-cost airline has struggled financially since the Coronavirus pandemic, weighed down by rising operating costs and increasing debt. By the time it filed for Chapter 11 protection in November 2024, the airline had already lost over $2.5 billion since the beginning of 2020.

The Trump administration had considered a government bailout for the cash-strapped airline to keep it from shutting down operations; however, a deal was not reached. US President Donald Trump had floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years.