<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Scores of passengers are stranded and thousands of workers have been stood down after American low-cost carrier Spirit Airlines shut down.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The budget </span><a href="https://www.9news.com.au/airlines" rel="" target="" title="airline"><span>airline</span></a><span> announced it would start an "orderly wind-down of operations, effective immediately" on May 2 after 34 years in the business.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"All Spirit flights have been cancelled and Spirit guests should not go to the airport," the airline said in a statement.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/jefferson-lewis-charged-murder-kumanjayi-little-baby/52a6fdc9-9bb9-40fc-83ff-58ddb3fd1638" rel="" target="" title="Jefferson Lewis charged with murder after death of five year-old girl"><strong><span>Jefferson Lewis charged with murder after death of five year-old girl</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Passengers arrived at airports across the US this morning to empty check-in desks and signs informing them all flights had been cancelled and customer service was no longer available.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Spirit cited the rising cost of jet fuel, which has more than doubled since the war in the Middle East broke out in February, alongside "other pressures on the business" for the closure, which will leave 17,000 employees without a job.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In March 2026, we reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business," Spirit President and Chief Executive Officer Dave Davis said.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/spirit-airlines-usa-major-budget-airline-goes-bust-citing-surging-jet-fuel-prices/c4233f5b-bbc6-4a90-9a8a-9f241dff7ac2" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"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."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Sustaining the business would have required hundreds of millions of dollars the airline "simply does not have and could not procure," Davis said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This is tremendously disappointing and not the outcome any of us wanted," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Spirit's bankruptcy has sparked concerns other low-cost carriers could be next.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/man-arrested-three-people-killed-in-attack-sydney-rosemeadow/cf6c8972-f96c-46ae-b20d-e8cbe1c6924f" rel="" target="" title="Man arrested after three family members killed in attack in Sydney home"><strong><span>Man arrested after three family members killed in attack in Sydney home</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But the airline faced significant challenges before the conflict broke out, including large debt, two bankruptcies within a year and a failed government bailout bid just weeks ago.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>After failing to bounce back from the COVID-19 pandemic, the airline filed for bankruptcy in November 2024, having haemorrhaged more than US$2.5 billion ($3.5 billion) since the start of 2020.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Spirit sought bankruptcy protection for the second time in August 2025, reporting $11.2 billion in debts and $11.9 billion in assets.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A major restructure followed, which sought to cut flights and operational costs by furloughing and downgrading pilots and flight attendants.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Spirit told creditors the restructure would allow them to post a net $304 million profit by 2027.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But just six months later, on April 18, the airline asked the US government for an emergency bailout.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>WORLD:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-iran-war-shipping-firms-warned-of-sanctions-over-paying-iranian-tolls-strait-of-hormuz/0471c2d7-d1c0-48b3-a8b6-e1bfcd6f8ae3" target="_blank" title=""><strong><span>New US warning over Strait of Hormuz 'tollbooth'</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Bail-out negotiations with the Trump Administration, reported to be worth $500 million, collapsed in recent days, sparking the airline's collapse today.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The airline serviced destinations across the US, Central America, the Caribbean and South America.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Around 9000 flights were scheduled until the end of May, according to Cirium analytics, potentially impacting millions of passengers across the month.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Refunds will be processed for impacted customers who booked directly with the airline, Spirit said, while passengers with third-party bookings should contact their travel agent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Compensation for Guests who booked flights using any other methods, including a voucher, credit or Free Spirit points, will be determined at a later date," Spirit said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> 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