Washington DC [US], May 3 : The US Assistant Secretary of State for Global Public Affairs, Dylan Johnson, on Saturday (local time) said that the State department is monitoring potential disruptions affecting passengers after the ultra-low-cost carrier Spirit Airlines announced it was ceasing operations immediately because of financial strain and rising fuel prices linked to the conflict in West Asia.
In a post on X, Johnson said the department was closely tracking the impact on American travellers abroad.
https://x.com/ASDylanJohnson/status/2050611951835697482
He said, "The US Department of State is aware of potential disruptions to Spirit Airlines operations and will continue to monitor impacts to American citizens abroad."
"We encourage all American citizens who are concerned Spirit passengers to consult with resources and guidance from the U.S. Department of Transportation," he added.
Johnson also stressed that commercial flight options remain available despite the disruption. "While commercial availability remains readily available across the affected regions, the Department is committed to assisting Americans in need of support returning to the United States," he said.
The ultra-low-cost US-carrier Spirit Airlines, known for its budget-friendly fares, on Saturday announced that it is ceasing operations effective immediately due to mounting financial difficulties and rising fuel prices amid the conflict in West Asia.
The airline confirmed that all flights have been cancelled, and customer service is no longer available.
In a statement released on its website, Spirit Airlines expressed its regret over the decision, noting that it was proud of the influence that the ultra-low-cost model had on the industry over the past 34 years.
"It is with great disappointment that on May 2, 2026, Spirit Airlines started an orderly wind-down of our operations, effective immediately. To our Guests: all flights have been cancelled, and customer service is no longer available. We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our Guests for many years to come," the statement read.
Spirit's sudden shutdown has sent shockwaves through the aviation industry in the US and left thousands of passengers stranded. The airline, which has long prided itself on offering low-cost airfares for travellers, was a major player in the US airline market, known for its no-frills service and affordable ticket options.
According to CNN, the ultra-low-cost airline has been struggling through its second bankruptcy and severe financial instability.
The airline was facing dire financial challenges well before the war in Iran led to a surge in jet fuel prices, further exacerbating its troubles.
Despite attempts to secure a last-minute rescue deal with the Trump administration, key creditors ultimately rejected the proposal.
Spirit Airlines announced it would issue refunds to all customers with existing tickets, advising them to rebook travel through other carriers, as per CNN.
This sudden shutdown will leave approximately 17,000 workers jobless, including 14,000 Spirit employees and thousands of contractors and workers reliant on the airline for their livelihoods.
The airline had filed for bankruptcy twice in the last two years, most recently in August 2025.
Last week, Spirit's attorney revealed in bankruptcy court that the company was in "very advanced discussions" with the Trump administration regarding a rescue package, as reported by CNN.
However, the proposed deal which would have transferred control of the majority of Spirit's shares to the government was rejected by a critical group of creditors, according to sources familiar with the negotiations, CNN reported.
US President Donald Trump also addressed the ongoing situation on Friday, during a media interaction at the White House South Lawn, acknowledging that a deal might not come to fruition.
"Well, we're looking at it but if we can't make a good deal, no institution's been able to do it. I'd like to save the jobs, but we'll have an announcement sometime today. We gave them a final proposal," Trump stated.
While Trump had initially indicated his support for the deal, the prospect of a bailout for a single airline drew strong opposition from both the airline industry and Republican members of the US Congress, as reported by CNN.
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