Spirit Airlines Shutdown and the Future of Cheap Flights

By Jacob Chen

Started in 1983 as Charter One, the American based airline, Spirit Airlines, has been one of the most affordable means of travel for the last 34 years. As of May 2nd, 2026, Spirit Airlines abruptly shut down. What caused the sudden collapse of a major player in the airline industry, and what does the future of cheap flight look like? 

The Cause

Spirit Airlines has a rocky history financially, experiencing many lows in recent years. Having gone bankrupt twice in the past two years (November 2024, August 2025) the company is no stranger to financial instability and overcoming the hurdles to stay operational. However, due to rising oil prices causing fuel prices to rise drastically, operations were no longer sustainable. Spirit Airlines claims, “recent geopolitical events resulted in a massive and sustained increase in fuel prices.” The recent geopolitical events, of course, being the United States’ war with Iran. The company called for a 500 million dollar federal bailout from the Trump administration, but failed to secure it. Without the bailout, the company decisively “closed its doors” and all flights were cancelled and refunded to those who had tickets after May 2nd, 2026. 

Spirit Airlines for the People

After the recent news of Spirit Airlines’ shutdown, a fan of Spirit Airlines decided to launch a crowdfunding movement called “Spirit 2.0”, which is an opportunity for the people to come together and buy Spirit Airlines to continue its legacy as an ultra low cost airline. Although initially starting as a joke, Hunter Peterson realized that people were coming together to crowdfund this movement, and is now officially a movement by the people and for the people. Securing the company through crowdfunding may have its limitations with time, as private equity may acquire the company first, however, it is possible if people come together and make it happen. On the Spirit 2.0 Website, Hunter Peterson writes, “Private equity is already circling the wreckage. But before they lock it up, there is a narrow window for something that has never happened in commercial aviation. The passengers, the workers, and the communities Spirit served can take it back.” As of Sunday night, Peterson has garnered pledges of nearly 23 million dollars from people who believe in the pursuit of bringing Spirit 2.0 to fruition. Still quite short of the 1.7 billion Peterson believes is necessary. 

The Future of Cheap Flights

Ultra low cost airlines may be in danger of bankruptcy, or forced to increase prices to make up for the exorbitant increases in oil prices. While the war in Iran rages on, oil prices can be expected to rise furthermore and cause the price of travel to continually skyrocket. The increase of ticket prices may also cause people to travel less, which in turn reduces the demand for travel. Ultimately, until the war in Iran ceases and oil prices steadily come back down, cheap travel may just be a thing of the past.