Spirit Airlines shuts down: 160 Orlando workers lose jobs, insurance

ORLANDO, Fla. - It was an emotional goodbye for Spirit Airlines workers who suddenly lost their jobs after the airline permanently shuttered. 

The airline shut down at 3 a.m., May 2 – after over 30 years. 

"It's devastating," a former worker told FOX 35's Chris Lindsay as the group gathered to say goodbye on May 4. 

Why did Spirit Airlines shutdown? 

Spirit Airlines suffered from years of financial struggle. The Associated Press reported that Spirit had gone bankrupt twice. 

FOX Business also reported that budget airlines sought assistance from the federal government amid the increasing fuel prices due to the war with Iran. 

Experts who spoke with FOX 35 said the airline was negotiating a bailout from President Donald Trump before news of the airline's shutdown was released instead. The deal would have negotiated $500 million for 90% of Spirit's equity, FOX Business reported, citing the Wall Street Journal, but the parties were unable to reach an agreement. 

Transportation Secretary Sean Duffy told FOX & Friends he called all the CEOs but "the problem was, there was nothing left," he said. Duffy said Spirit's airplanes were leased – leaving the airline with very little value remaining. 

"They had been leveraged so far, there was nothing left to buy," Duffy said. " … I didn't think this was a good idea." 

Working to refund canceled flights

FOX 35 reported some travelers were flying on Spirit from Orlando, unsure if they'd be able to return from their destination. As Spirit ceased global operations, all flights were canceled and customer service stopped. 

Due to this, Spirit is unable to rebook any customers and promised a refund to guests through credit and debit cards. 

No employment, insurance for former workers

In an X post, the U.S. Department of Labor said the president is taking action to connect workers with benefits, jobs and training. Around 160 Orlando-based employees were impacted, Orlando International Airport said. 

Former Spirit workers told FOX 35's Chris Lindsay that with the lack of employment and health insurance, they're unable to see a doctor or get a prescription.

"We have nothing now," a former worker told Lindsay. 

Now, some former employees are looking for new jobs, while others chose to retire, Lindsay reported. 

Sec. Duffy said the aviation sector is hiring, and these jobs will be covered by other airlines. 

Could Spirit have been saved? 

In an X post, Duffy said a proposed merger between Spirit and JetBlue was blocked, saying former Transportation Secretary Pete Buttigieg "made the wrong call." 

Treasury Secretary Scott Bessent said if Spirit was allowed to merge with JetBlue, it would have had more resiliency. 

The merger didn't pass as Sen. Elizabeth Warren argued the merger would have led to fewer flights and higher fares, she said in a March 5, 2024 X post. 

The Associated Press reported that a federal judge blocked the merger, saying that customers who relied on Spirit's lower fares would be hurt. Some fares offered $33 one-way flights for spring break deals. 

Airlines support travelers: Could this mean price hikes? 

As consumer prices center around supply and demand, with fewer airlines and the number of travelers growing, could we see an increase in flight prices with the remaining airlines? 

Experts told FOX News, that Spirit's closure will have a ripple effect across air fare pricing, saying there's no pressure to keep prices lower. 

After Spirit's closure, other airlines, such as JetBlue and Frontier, offered deals to consumers. 

What they're saying:

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