The Florida-based low-cost Spirit Airlines could come to an end this year amid rising jet fuel costs.

Spirit Airlines Possibly Liquidating

Bloomberg reports that Spirit Aviation Holdings Inc. is at risk of liquidation due to jet fuel prices caused by the U.S. war with Iran. The company is in ongoing talks with creditors and plans could still change.

Spirit first filed for bankruptcy in 2024 and then again in 2025. It was expected to exit bankruptcy this summer after reaching an agreement with creditors to cut billions of dollars in debt and reduce costs.

Spirit told ABC News they “[do not] comment on market rumors and speculation.”

If Spirit does close, its planes and gates would go to competitors.

Ben Mutzabaugh, senior managing editor for aviation at The Points Guy, told ABC News that Spirit’s Fort Lauderdale gates “are considered very, very valuable.”

As for guests who already have flights booked with Spirit Airlines travel expert with Going Katy Nastro says you shouldn’t cancel yet “because then you forfeit your right to a refund if there’s still some money left over to be able to do so.”

Nastro predicts that Spirit going under would be a “big, big gut punch to cheaper travel.”

“The single biggest reason why we see cheaper flights on any given route, especially lower cost carrier, is competition,” Nastro said. “And even if Spirit combined [with another carrier], that would not be great for competition, but at least it would be better than them not existing at all.”

Nastro added, “The biggest impact is going to be on the average traveler that travels once or twice a year that maybe is located in a Spirit hub. They’re going to feel the most pain, but the market overall will feel pain for sure.”

Fort Lauderdale is Spirit’s main hub but it also flies through Orlando International Airport, the most popular airport for visitors to Walt Disney World and Universal Orlando Resort.

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