Spirit Airlines abruptly shut down Saturday morning, leaving thousands of passengers stranded at airports across the U.S. and disrupting travel plans worldwide. The budget airline, known for its yellow planes and ultra-low fares — canceled all flights and halted customer service, instructing travelers not to go to the airport. This marks the first time in 25 years a major U.S. airline has gone out of business due to financial trouble.

Travelers Left in Limbo

At New York’s LaGuardia Airport. Passengers arrived to find Spirit’s departure board listing nine flights to cities across Texas, Florida, Michigan, North Carolina. South Carolina all marked as ‘cancelled.’ A sign in Terminal A read, “We regret to inform you that Spirit Airlines has ceased global operations,” according to CNN. One woman and her elderly mother told the outlet they were en route to Charlotte for a family funeral and had not received any notifications about the canceled flights.

Passengers with reservations were not rebooked by the airline, but those who paid with credit or debit cards will receive automatic refunds — Spirit said it was beginning a “reduction of operations” and would process refunds for any flights paid for directly with the company. Those who booked through a travel agency or third-party site were advised to contact their booking source for a refund.

Refunds and Voucher Uncertainty

According to The Points Guy. Spirit pledged to automatically refund passengers who booked directly with the company using a credit or debit card, while However, refunds for bookings made with vouchers, trip credits, or Free Spirit points will be determined later through bankruptcy court proceedings. The U.S. Department of Transportation warned that bankruptcy proceedings are complex and could impact what compensation consumers are entitled to.

Customers who paid with vouchers or points may face uncertainty, as the airline said it would not provide immediate refunds for those bookings, as Spirit also noted it would not assist passengers in rebooking flights with other airlines, according to NBC 6 South Florida. Instead, affected passengers were advised to find alternative travel options themselves.

Competitors Offer Assistance

In response to the shutdown, several U.S. airlines have introduced limited-time offers to help stranded passengers. Airlines including American, United, Delta, JetBlue, Frontier, and Southwest have reduced fares or set price caps for flights on routes previously served by Spirit. For example, Southwest’s offer is available at airport ticket counters until May 6, while United allows rebooking for up to two weeks, as reported by the Independent en Español.

Frontier Airlines said it recognized the difficulty for Spirit customers and employees, with its director of sales, Bobby Schroeter, noting Spirit played a key role in expanding affordable air travel. “We understand this is a difficult time for their customers and team members,” he said.

Despite these efforts, the Berliner Zeitung reported that Spirit’s collapse was largely attributed to the ongoing Iran conflict and the resulting spike in jet fuel prices. The airline had been struggling financially for years and had filed for bankruptcy twice before. Recent attempts to secure a last-minute rescue deal, including one with the Trump administration, failed, according to CNN. A key group of creditors reportedly rejected the proposed plan.