DANIA BEACH/FLORIDA - American budget airline Spirit Airlines has immediately ceased all operations. Parent company Spirit Aviation Holdings announced this on Saturday morning. All flights have been cancelled and passengers are asked not to go to the airport.
As of Saturday morning, tickets can no longer be booked through the airline’s website. Until Friday evening, this was still possible.
Financial troubles and fuel costs
According to the company, the decision is the result of persistent financial difficulties, worsened by sharply rising fuel prices. Earlier attempts to restructure and financially strengthen the company proved unsuccessful.
In a statement, the company says that the recent rise in oil prices and other costs "have significantly impacted the financial outlook". With additional financing failing to materialise, Spirit was forced into a controlled wind-down.
CEO Dave Davis says that as recently as March, an agreement had been reached with bondholders on a restructuring plan. "However, the sudden and sustained rise in fuel prices over the past few weeks ultimately left us with no other choice," Davis said.
The collapse of Spirit also has consequences for air traffic to and from Aruba. The airline offered relatively affordable flights from Fort Lauderdale.
Thousands of jobs at risk
Spirit had been in operation for thirty-four years and employed approximately fifteen thousand people. The airline operated around five hundred flights daily.
Davis described the outcome as "extremely disappointing" and thanked staff, travellers and the US government for their support and efforts to save the company.
Passengers can find more information on the company’s wind-down website.
