A MAJOR US airline is shutting down and has cancelled all flights immediately.
Budget carrier Spirit Airlines had been in talks with the US government about securing a rescue deal to save it from collapse.
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But after discussions collapsed, the airline said in an announcement on its website it had “started an orderly wind-down of our operations, effective immediately”.
All of its upcoming flights have been cancelled.
Spirit had already filed for its second bankruptcy in recent years before the war in Iran, but experts say it was pushed over the edge by rising jet fuel costs.
Airlines have seen the cost of jet fuel double since the war began at the end of February.
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Fuel costs can account for as much as 40% of an airline’s outgoings.
Other companies have been cutting flights and hiking fares to cope with the cost increases.
Meanwhile, the head of the International Energy Agency (IEA) has warned Europe could run out of jet fuel within the next six weeks.
Spirit had been trying to secure a $500million (£386million) bailout from the Trump administration.
As recently as the end of April, it had been confident the rescue deal would be finalised soon.
What can I do if my flight is cancelled?
The airline has said it will automatically process refunds for any flights bought with a credit or debit card to the original form of payment.
If you booked flights with a travel agent, you should contact the agent directly to request a refund.
It’s not clear yet how you will be compensated if you booked your flights using a voucher, credit or airline points.
This will be determined at a later date through the bankruptcy court process.
Customers won’t be reimbursed for any related costs such as emergency hotel stays or replacement flights associated with cancelled trips.
However you should check if you can get these covered through your travel insurance.
Spirit has said its customer service is no longer available but customers with questions can contact its claims agent.
