Spirit Airlines announced over the weekend that it is permanently ceasing all operations, effective May 2. All Spirit flights were immediately canceled, stranding thousands of passengers and leaving them more uncertain about future travel plans. 

Here's what to know about the collapse of Spirit Airlines, what happens next and what you can do right now.

Why did Spirit Airlines collapse?

Spirit Airlines simply ran out of money. Years of financials losses and two bankruptcies since 2024 were exacerbated by the surging jet fuel costs tied to the war in Iran. According to CNBC, the airline was in negotiations with the Trump administration to secure a $500 million government bailout, but the plan was rejected, forcing the airline to shut down on Saturday. 

"For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while driving affordability across the industry," said Dave Davis, Spirit's CEO, in the airline's shutdown announcement (PDF). "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." 

How many people have been affected?

It's unclear exactly how many travelers have been affected by Spirit Airlines' shutdown, but news reports indicate that thousands of passengers were stranded midtrip or had their flights canceled, causing major disruptions at Spirit hubs such as Orlando and Fort Lauderdale.

Spirit said 17,000 direct and indirect employees have lost their jobs due to this shutdown. 

What should you do now if your flight was canceled? 

Spirit Airlines said it is aiming for an "orderly wind-down" that includes eliminating all flights and customer service operations. If you're stuck in limbo with canceled flights, do not go to the airport. If you need to travel immediately, check other airlines for limited-time rescue fares. You can use your Spirit Airlines confirmation number and proof of purchase to rebook with another airline as soon as possible.

The National Consumers League provided some tips for affected flyers, including keeping all booking information, receipts and records for a potential bankruptcy claim or refunds (more on that below). The NCL also recommends monitoring your accounts for a refund, checking your travel insurance policy and taking advantage of capped or reduced airfare when rebooking flights. 

"Not all Spirit customers should assume a refund will automatically appear," John Breyault, vice president of public policy, telecommunications and fraud at the NCL, said. "When an airline shuts down this suddenly, it's up to travelers to take proactive steps to have the best chance of getting their money back."

Can you receive a refund for a canceled Spirit flight?

Yes. If you bought your ticket directly through Spirit Airlines with a debit or credit card, the company said it will automatically refund those ticket costs. If you booked through a travel agent, contact your agent directly for a refund.

If you booked your tickets with vouchers, credits or loyalty points, your refund process will not be immediate, and Spirit said it may not result in a full refund. According to Spirit, compensation "will be determined at a later date through the bankruptcy process." 

If your refund is significantly delayed, you can use your card issuer's dispute or chargeback process to seek compensation. You can also explore travel insurance claims and bankruptcy claims as a last resort. According to the Department of Transportation, if an airline completely liquidates as Spirit has, you may be able to file a "Proof of Claim" in the bankruptcy proceeding for a potential refund, but you're likely only to receive a partial refund, if anything. 

How could this impact airfare costs? 

Spirit Airlines' shutdown and cancellation of all flights is expected to increase airfares across the US. 

Airfares have surged in 2026 due to rising jet fuel costs and high demand. According to NerdWallet, airfare costs are up 14.9% over the past year, with customers bearing the brunt. With Spirit ceasing all operations, there are fewer budget options than ever, and competition is shrinking in several markets, especially South Florida. Other airlines are likely to fill some routes in the coming weeks and months, but addressing capacity and personnel gaps will take time.