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Spirit Airlines shuts down after two bankruptcies and a failed rescue plan
Spirit Airlines is ceasing operations and canceling all flights, marking the end of the budget airline. The company's closure, spurred by rising fuel prices and financial struggles, impacts 17,000 employees and contractors. Passengers with credit or debit card bookings will receive automatic refunds; others face uncertainty through bankruptcy proceedings. The airline, founded in 1964, pioneered low-cost travel but faced challenges including excess capacity and rising labor costs. Major airlines like United, American, and Southwest are offering assistance to stranded Spirit passengers. Spirit's exit is expected to raise ticket prices, adding to existing cost pressures for travelers. The company's assets, including aircraft and airport gates, will likely be liquidated during the wind-down. The demise of Spirit reignites debates regarding the Biden administration's decision to block its merger with JetBlue. This situation underlines the pressures on the ultra-low-cost airline model due to increased operational expenses.
