The airline's collapse will leave 17,000 employees without a job.
Scores of passengers are stranded and thousands of workers have been stood down after American low-cost carrier Spirit Airlines shut down.
The budget airline announced it would start an "orderly wind-down of operations, effective immediately" on May 2 after 34 years in the business.
"All Spirit flights have been cancelled and Spirit guests should not go to the airport," the airline said in a statement.
READ MORE: Jefferson Lewis charged with murder after death of five year-old girl
Passengers arrived at airports across the US this morning to empty check-in desks and signs informing them all flights had been cancelled and customer service was no longer available.
Spirit cited the rising cost of jet fuel, which has more than doubled since the war in the Middle East broke out in February, alongside "other pressures on the business" for the closure, which will leave 17,000 employees without a job.
"In March 2026, we reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business," Spirit President and Chief Executive Officer Dave Davis said.
"However, the sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the Company."
Sustaining the business would have required hundreds of millions of dollars the airline "simply does not have and could not procure," Davis said.
"This is tremendously disappointing and not the outcome any of us wanted," he said.
Spirit's bankruptcy has sparked concerns other low-cost carriers could be next.
READ MORE: Man arrested after three family members killed in attack in Sydney home
But the airline faced significant challenges before the conflict broke out, including large debt, two bankruptcies within a year and a failed government bailout bid just weeks ago.
After failing to bounce back from the COVID-19 pandemic, the airline filed for bankruptcy in November 2024, having haemorrhaged more than US$2.5 billion ($3.5 billion) since the start of 2020.
Spirit sought bankruptcy protection for the second time in August 2025, reporting $11.2 billion in debts and $11.9 billion in assets.
A major restructure followed, which sought to cut flights and operational costs by furloughing and downgrading pilots and flight attendants.
Spirit told creditors the restructure would allow them to post a net $304 million profit by 2027.
But just six months later, on April 18, the airline asked the US government for an emergency bailout.
WORLD: New US warning over Strait of Hormuz 'tollbooth'
Bail-out negotiations with the Trump Administration, reported to be worth $500 million, collapsed in recent days, sparking the airline's collapse today.
The airline serviced destinations across the US, Central America, the Caribbean and South America.
Around 9000 flights were scheduled until the end of May, according to Cirium analytics, potentially impacting millions of passengers across the month.
Refunds will be processed for impacted customers who booked directly with the airline, Spirit said, while passengers with third-party bookings should contact their travel agent.
"Compensation for Guests who booked flights using any other methods, including a voucher, credit or Free Spirit points, will be determined at a later date," Spirit said.
NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.
- Download the 9NEWS App here via Apple and Google Play
- Make 9News your preferred source on Google by ticking this box here
- Sign up to our breaking newsletter here
Mother, father and brother killed in 'grisly' alleged triple murder
'Real uncertainty': Albanese warns fuel crisis could worsen
Fisherman comes to woman's aid after alleged hit-run on boat ramp
Bail denied for pair accused of torching Melbourne restaurant
Murder charges laid after death of five-year-old girl in NT
Trump teases 'very interesting' UFO files in new document dump
Drone spots grandma struggling in war zone. A remarkable rescue follows
Shark-spotting drones launched in tribute to surfer
Riot footage shows chaos in Alice Springs shop as five arrested
Whale 'Timmy' released in the North Sea after weeks stranded
Family among thousands priced out of life-changing medication
How Pokémon cards are becoming a survival strategy for Aussie retailers
Frenzy as petrol price drops under 80 cents a litre at one service station
Scammers attempt to extort Sydney removalist with sudden flurry of negative reviews
