Spirit Airlines begins orderly wind-down of operations, cancels all flights

PHILADELPHIA - Spirit Airlines says it is shutting down its operations after more than three decades, canceling all flights as it begins what it calls an "orderly wind-down."

What we know:

Spirit Aviation Holdings, the parent company of Spirit Airlines, announced May 2 that it has started winding down operations effective immediately.

The company said all flights have been canceled and warned passengers not to go to the airport.

Why it’s happening

In a statement, the airline said it had been working to restructure the business and secure additional funding but was unable to do so.

Executives pointed to a recent surge in fuel prices and broader financial pressures that worsened the company’s outlook.

Spirit said it would have needed hundreds of millions of dollars in additional liquidity to continue operating but was unable to secure it.

What they're saying:

"For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible," CEO Dave Davis said in a statement.

"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."

What customers should know

Spirit says:

• Refunds will be automatically issued for flights purchased with credit or debit cards
• Customers who booked through travel agents should contact them directly
• Compensation for vouchers, credits or loyalty points will be determined through the bankruptcy process

More information is available on the company’s restructuring website.

What's next:

The wind-down marks the end of Spirit Airlines’ operations after more than 30 years in business, with the process expected to unfold through bankruptcy proceedings.