Just a few hours ago, Spirit execs were saying everything is just fine. At noon yesterday,
Trump was saying that a bailout was still likely. (The first time I read about Trump saying that "we" were going to buy Spirit, I thought he meant him personally, or The Trump Organization. Spirit only needed about $500 million, and Trump could afford that.) That nobody wanted to buy a major airline for $500M means it was a really bad deal and not worth saving.
They were already in Chapter 11 bankruptcy, the "debtor in possession" reorganization mode. Not yet clear if they just went to Chapter 7, liquidation, but that's probably happening within days.
Still, a zero-notice shutdown is a bit much. Some people who have tickets for tomorrow probably went to bed already.
There's still the mechanics of winding down. All the planes have to be flown to suitable storage locations. With such an abrupt shutdown, they'll have mis-positioned aircraft all over their route
system.
Many planes are probably leased, so the lessor may have to arrange to take custody of the aircraft.
It's probably better if the aircraft are leased - there's some lessor with funds to take care of the job and the knowledge of how to arrange it, since a handover and move happens at the end of each aircraft lease.
Aircraft Spirit actually owns will have to be moved by a bankruptcy receiver, which is a lawyer trying to run what's left of an airline.
Most major airports charge very high parking fees. LAX charges $1000 for the first day, and that goes up to $5000 a day on day four. They're not in the storage business.
There are probably a lot of middle of the night phone calls and meetings going on right now.
It’s strange to see so many commenters celebrating the death of a company and the loss of so many jobs.
I flew Spirit a few times. The first time sucked because it was an emergency and I had no other option. The last few flights were great. We got the large seats up front for $75 extra. That plus parking at SJC was still cheaper than flying Southwest out of OAK.
The staff were friendly, and the gate was conveniently across from a lounge, so we had a truly great experience for those couple flights to Dallas.
Low cost carrier. Think Ryanair. Competition from the rest of the market and bad management put them in a bad position, with the most recent war causing unsustainable fuel issues.
Other airlines may be able to double/triple their prices in the short term. Spirit's customers may simply choose to not fly.
Good. They treated their customers terribly and actions have consequences. I was double charged for a flight and they just refused to acknowledge it until I charged back, after which I assume they banned me.
The immediate cause was rising fuel prices. The other issue sounds like it was poorly ran.
More generally, it is also a low cost carrier at a time when, after years of competing on price, airlines are seeing people willing to pay more for a better experience. All other carriers are expanding their premium options, catering to the affluent part of the K economy (for the first time ever the majority of Delta revenue came from premium cabins over main). Meanwhile, Spirit was dealing on the other side of the K who is also most impacted by increasing inflation, etc... giving Spirit zero ability to raise prices.
Airlines are not great business. Margins are not great. Fuel is significant part of their operating costs. And if it goes up too much in too short time the whole model breaks. Less margins you have the more you will be impacted. So if you are operating at edge by default fast move in costs will destroy you.
The business model works fundamentally differently in the US and Europe due to geography. The US is big, meaning that flights are often longer, meaning that fuel is a bigger portion of the operating cost. And fuel is essentially something airlines can’t reduce the cost of compared to other operating costs where it might be possible to optimize for greater efficiency.
Calling Spirit a small regional just betrays the fact that you don't know anything about the airline industry.
You asked if this was caused by or related to bad customer service. This was 100% caused by the increase in jet fuel prices due to the war in Iran. So, once again, you clearly don't follow this area at all and probably shouldn't ask questions about it, especially if you're gonna try to be snarky.
That really sounds line the US is the only country in the world. Considering the world is bigger, I would call Spirit maybe regional, but not small. Ask some europeans, basically no one will know Spirit - as US people may not know e.g. Wizz.
This process may seem ugly, but just like biological death is necessary for an ecosystem, this sort of death/restructuring is essential for capitalist economies. Assets and capital get reallocated to better uses. It's all part of the circle of life.
Bankcruptcy and corporate death in general are important. However, the details of how that is managed can vary wildly, and not all implementations are equal.
In this case, the bankcruptcy was handled by cancelling all flights with 1 day of notice. This level of ugliness is not necessary.
Thank God human beings who spend money on these resources are left to fend for themselves. Imagine if we spent good money on a flight, and now the company winds down its operations even as we are on route to our destination. Since we are just a number, I supposed we should simply cease to exist or occupy a liminal space. Or maybe... we could be treated as a human being?
Unfortunately continuing to burn money with no hope of recovery is not a popular strategy among judges and creditor's lawyers. Customers will either get refunds or join the back of the creditor line.
In addition to the human cost that others mention, the big problem is that in our current system, this doesn't lead to fresh blood coming in and being able to compete on an even footing: it leads to the giant incumbents schlorping up the pieces and becoming even bigger and stronger.
Your statement might be true in a system with healthy safeguards ands competition, but that isn't the system we have in the real world today.
Sure, for those not affected by these capitalist decisions, left stranded in the middle of nowhere, or having to look for a new job, while the owner party at their coffy houses.
While it's fair to criticize how this screwed up customers (and perhaps workers), airline shutdowns are often good things, route/airport slots gets freed for example, and airlines with better value (cost or quality wise) can take over.
I don't live in the US but spirit has been the butt of jokes for years.
I am so grateful for this announcement. In a time when gas prices are high, Spirit should be the kind of capitalist example that dominates. Instead, it goes bankrupt despite the President trying to nationalize it. Thanks be to the God of money.
can't help but think of the deadweight loss to the US over lack of free market capitalism in terms of bailouts, price supports & subsidies, monopolies, etc. every day we stray further and further from this system we purport to have.
edit: do folks not think more competition would be better for consumers? i'm no stan of capitalism but surely it could be made better, sheesh.
> Winding Down
> To our Guests: all flights have been cancelled, and customer service is no longer available
That seems quite a bit stronger than “winding down”!
Just a few hours ago, Spirit execs were saying everything is just fine. At noon yesterday, Trump was saying that a bailout was still likely. (The first time I read about Trump saying that "we" were going to buy Spirit, I thought he meant him personally, or The Trump Organization. Spirit only needed about $500 million, and Trump could afford that.) That nobody wanted to buy a major airline for $500M means it was a really bad deal and not worth saving. They were already in Chapter 11 bankruptcy, the "debtor in possession" reorganization mode. Not yet clear if they just went to Chapter 7, liquidation, but that's probably happening within days.
Still, a zero-notice shutdown is a bit much. Some people who have tickets for tomorrow probably went to bed already.
There's still the mechanics of winding down. All the planes have to be flown to suitable storage locations. With such an abrupt shutdown, they'll have mis-positioned aircraft all over their route system. Many planes are probably leased, so the lessor may have to arrange to take custody of the aircraft. It's probably better if the aircraft are leased - there's some lessor with funds to take care of the job and the knowledge of how to arrange it, since a handover and move happens at the end of each aircraft lease. Aircraft Spirit actually owns will have to be moved by a bankruptcy receiver, which is a lawyer trying to run what's left of an airline. Most major airports charge very high parking fees. LAX charges $1000 for the first day, and that goes up to $5000 a day on day four. They're not in the storage business.
There are probably a lot of middle of the night phone calls and meetings going on right now.
It's "orderly", don't you know!
It was a very quick wind down.
More like a free fall ffs
It's a fall down. Just like their stock prices.
It’s strange to see so many commenters celebrating the death of a company and the loss of so many jobs.
I flew Spirit a few times. The first time sucked because it was an emergency and I had no other option. The last few flights were great. We got the large seats up front for $75 extra. That plus parking at SJC was still cheaper than flying Southwest out of OAK.
The staff were friendly, and the gate was conveniently across from a lounge, so we had a truly great experience for those couple flights to Dallas.
Can someone explain to me (a non American) which niche or segment was Spirit in (and perhaps why they, and not any other airline, are shutting shop)?
Low cost carrier. Think Ryanair. Competition from the rest of the market and bad management put them in a bad position, with the most recent war causing unsustainable fuel issues. Other airlines may be able to double/triple their prices in the short term. Spirit's customers may simply choose to not fly.
https://www.npr.org/2026/05/02/nx-s1-5807933/spirit-airlines... describes this in more detail.
Similar to Ryanair in Europe
The article does not give context : it is not entirely about the price of fuel, but it seems like fuel was the last nail in the coffin...
Seems like the fallout of the unnecessary adventurism in middle east.
Good. They treated their customers terribly and actions have consequences. I was double charged for a flight and they just refused to acknowledge it until I charged back, after which I assume they banned me.
That’s my experience of every single US airline though…
Why did Spirit die? Was there any last of this that had to do with their abysmal customer service?
The immediate cause was rising fuel prices. The other issue sounds like it was poorly ran.
More generally, it is also a low cost carrier at a time when, after years of competing on price, airlines are seeing people willing to pay more for a better experience. All other carriers are expanding their premium options, catering to the affluent part of the K economy (for the first time ever the majority of Delta revenue came from premium cabins over main). Meanwhile, Spirit was dealing on the other side of the K who is also most impacted by increasing inflation, etc... giving Spirit zero ability to raise prices.
Airlines are not great business. Margins are not great. Fuel is significant part of their operating costs. And if it goes up too much in too short time the whole model breaks. Less margins you have the more you will be impacted. So if you are operating at edge by default fast move in costs will destroy you.
IAG in 2025 had a record operating margin of 15.1%.
Ryanair's gross profit margin for fiscal years ending March 2021 to 2025 averaged 19.1%.
Some are (were?) doing just fine - in Europe at least.
Sure, it's no Big Tech or banking, but it's not like the single low digit percentage of eg retail.
Perhaps some USA airlines need some advice from across the pond?
The business model works fundamentally differently in the US and Europe due to geography. The US is big, meaning that flights are often longer, meaning that fuel is a bigger portion of the operating cost. And fuel is essentially something airlines can’t reduce the cost of compared to other operating costs where it might be possible to optimize for greater efficiency.
Is this your first time on the internet since February?
Some of us don't consume the mainstream news and don't fly.
If you didn't know about the war in Iran and the effects it has had on oil and thus jet fuel prices, I'm not sure what you're doing on HN.
Small regional airline failing isn’t a big news story in my typical parts of the internet.
Calling Spirit a small regional just betrays the fact that you don't know anything about the airline industry.
You asked if this was caused by or related to bad customer service. This was 100% caused by the increase in jet fuel prices due to the war in Iran. So, once again, you clearly don't follow this area at all and probably shouldn't ask questions about it, especially if you're gonna try to be snarky.
That really sounds line the US is the only country in the world. Considering the world is bigger, I would call Spirit maybe regional, but not small. Ask some europeans, basically no one will know Spirit - as US people may not know e.g. Wizz.
This process may seem ugly, but just like biological death is necessary for an ecosystem, this sort of death/restructuring is essential for capitalist economies. Assets and capital get reallocated to better uses. It's all part of the circle of life.
Bankcruptcy and corporate death in general are important. However, the details of how that is managed can vary wildly, and not all implementations are equal.
In this case, the bankcruptcy was handled by cancelling all flights with 1 day of notice. This level of ugliness is not necessary.
“How did you go bankrupt? Two ways. Gradually, then suddenly.” -Hemmingway
Thank God human beings who spend money on these resources are left to fend for themselves. Imagine if we spent good money on a flight, and now the company winds down its operations even as we are on route to our destination. Since we are just a number, I supposed we should simply cease to exist or occupy a liminal space. Or maybe... we could be treated as a human being?
Ideally, they should have stopped selling tickets and then closed shop when the sold flights were done. At least within some time frame like 1 month
Unfortunately continuing to burn money with no hope of recovery is not a popular strategy among judges and creditor's lawyers. Customers will either get refunds or join the back of the creditor line.
looks at ai investments
Sure.
Comment is made after May 1st, international strike day.
> biological death is necessary for an ecosystem
Can you expand on this? How do you explain e.g. ecosystems around centuries-old redwoods?
Interesting example since giant sequoias benefit greatly from forest fires...
https://en.wikipedia.org/wiki/Sequoia_sempervirens#Fire_adap...
In addition to the human cost that others mention, the big problem is that in our current system, this doesn't lead to fresh blood coming in and being able to compete on an even footing: it leads to the giant incumbents schlorping up the pieces and becoming even bigger and stronger.
Your statement might be true in a system with healthy safeguards ands competition, but that isn't the system we have in the real world today.
Sure, for those not affected by these capitalist decisions, left stranded in the middle of nowhere, or having to look for a new job, while the owner party at their coffy houses.
That sounds more like religious dogma than thought out argument.
The capital will probably go to further the AI bubble, I really don't see how that would be more useful than enabling travel.
While it's fair to criticize how this screwed up customers (and perhaps workers), airline shutdowns are often good things, route/airport slots gets freed for example, and airlines with better value (cost or quality wise) can take over.
I don't live in the US but spirit has been the butt of jokes for years.
I am so grateful for this announcement. In a time when gas prices are high, Spirit should be the kind of capitalist example that dominates. Instead, it goes bankrupt despite the President trying to nationalize it. Thanks be to the God of money.
Wow those Halloween shops really flopped huh?
If only they flapped. Maybe they'd still be in the air.
I sense another bailout for the airline industry if the illegal Iran war continues. Spirit is just the first domino to fall.
Too bad. Capitalism working as it should and no last minute government bailouts for failing companies.
The market should decide and determines winners and losers, not the government.
So compete.
I never heard about this company before this morning, so I can't project any second order effect of this closure.
That being said, I suspect many people had never heard about Lehman Brothers before 2008...
https://en.wikipedia.org/wiki/Monopoly
Man wouldn’t it be great if we lived in that world?
Other than ideology, in what way is this a good outcome? For passengers? For workers?
Because companies that are run poorly should go out of business. Otherwise, what incentive is there for management to do a good job?
Why can't management be fired instead? Why punish the above groups for the mistakes of leadership?
can't help but think of the deadweight loss to the US over lack of free market capitalism in terms of bailouts, price supports & subsidies, monopolies, etc. every day we stray further and further from this system we purport to have.
edit: do folks not think more competition would be better for consumers? i'm no stan of capitalism but surely it could be made better, sheesh.