Spirit Airlines, which is known for being very low-cost, has shut down after years of financial problems. They had been dealing with debt for a long time and had already been through the bankruptcy process twice. It might've helped them in the short run, but it never really fixed the overarching problems. On top of this, higher fuel prices, higher operating costs, and tougher competition in the airline industry made it even harder for them to remain profitable. Even with demand for travel rebounding after the pandemic, Spirit was never able to get its finances worked out.
In some of their final days, there was a last effort to keep the airline alive. This was through a bailout or takeover idea that had connections to the Trump administration. This idea depended on getting approval from creditors and other stakeholders, which ultimately never happened. After this, Spirit had no realistic path forward and started shutting things down. Flights were cancelled, leaving passengers trying to find new last-minute flights. If tickets were bought straight from Spirit, they had a reserve to refund these customers. Other airlines offered $200 one-way tickets for confirmed Spirit ticket holders. Overall, Spirit shows how risky the ultra-low-cost airline structure can be when costs suddenly rise, and there's no cushion to absorb it.
https://apnews.com/article/spirit-airlines-trump-bailout-bankruptcy-37a4818e1b71c0905d022f669d85948c
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