Spirit Airlines is reportedly on the verge of shutting down as the company struggles to recover from bankruptcy amid rising fuel costs.
According to a new report from Bloomberg, the airline could liquidate as soon as this week, and skyrocketing fuel prices due to the war in Iran are a likely culprit.
Spirit is the nation’s leading ultra-low-cost airline, known for its yellow planes and no-frills service. It operates out of the small but historic Terminal A at LaGuardia Airport.
The Florida-based airline is currently working through its second bankruptcy and last month announced it would restructure with updated fleets, premium ticket options, and a focus on its strongest routes like Fort Lauderdale, Orlando, and at LaGuardia, and Newark too.
Travel expert Zach Griff, author of the From the Tray Table newsletter, says if Spirit does stop operations, it would cause a ripple effect on prices industry-wide.
“Fuel costs could be the dagger to Spirit, right? I would be incredibly sad to see the loss of Spirit, and not even because I like to fly Spirit and, you know, it has- they’ve rebranded. It’s much better. But Spirit’s existence keeps every other airline in check,” Griff said.
Typically, when airlines liquidate, they immediately cease operations, which is unsettling news to those who may have upcoming flights booked.
Griff says there are ways to protect yourself.
“The credit card companies will end up being the ones who foot the bill or kind of help you out with getting that refund if Spirit were to liquidate, you know, through chargebacks and things like that,” Griff said.
———-
* Get Eyewitness News Delivered
* More local news
* Download the abc7NY app for breaking news alerts
Submit a tip or story idea to Eyewitness News
Have a breaking news tip or an idea for a story we should cover? Send it to Eyewitness News using the form below. If attaching a video or photo, terms of use apply.
Copyright © 2026 WABC-TV. All Rights Reserved.
