Low-cost carrier Spirit Airlines has shut down after 34 years in the industry due to bankruptcy, leaving thousands of passengers stranded.
Spirit Airlines, known for its discounted fares and employing about 17,000 people, said it has “started an orderly wind-down of our operations, effective immediately.”
In a report by the Associated Press, the airline had previously gone through bankruptcy twice. However, it said it could no longer cope with rising oil prices amid the Middle East conflict.
With jet fuel prices soaring since the start of the U.S.-Iran war, Spirit President and CEO Dave Davis said the situation “left us with no alternative but to pursue an orderly wind-down of the company.”
“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,” he added.
According to the airline’s website, all flights have been canceled and customer service is no longer available.
Passengers who had booked flights were shocked to find them canceled, while employees were also caught off guard by the sudden loss of their jobs.
However, Spirit Airlines said it will process refunds for affected passengers.
Spirit Airlines began operations in 1992 and became widely recognized for its yellow-colored planes.
In February, the airline announced it had reached an “agreement in principle” to restructure its debt with creditors, saying it expected to emerge from bankruptcy by early summer.
However, a spike in fuel prices triggered by the U.S.-Iran war, which began in the latter part of February, dealt a heavy blow to the airline.
“We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our guests for many years to come,” the company said in its statement.
