Canadians who cross the border to catch cheap flights have one less option, after the collapse of Spirit Airlines in the United States.
The carrier announced Saturday it is shutting down operations effective immediately, cancelling all flights and warning passengers not to head to the airport.
The Florida-based budget carrier said the decision follows mounting financial pressure, including a sharp rise in fuel prices that left the company unable to secure additional funding.
“For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while driving affordability across the industry,” said Dave Davis, Spirit’s president and chief executive officer.
Davis explained that in March 2026, the company reached an agreement with bondholders on a restructuring plan that would have allowed them to emerge as a go-forward business.
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,” he added.
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That move could have ripple effects for Canadian travellers, particularly in Ontario and Quebec, where some passengers cross the border to fly out of U.S. cities like Plattsburgh and Niagara Falls for cheaper fares.
“The spirit brand had a lot of value in the marketplace,” said John Gradek, expert in aviation management with the McGill university.
“This was a cash problem, and they just could not get enough revenue to cover overhead,” he added.
The airline said it would have needed hundreds of millions of dollars to sustain the business.
“This is tremendously disappointing and not the outcome any of us wanted,” Davis said.
The move comes as the broader airline industry faces rising costs linked to global instability, including the ongoing conflict involving Iran, which has driven up oil and jet fuel prices.
Other Canadian airlines are already adjusting.
Air Canada has suspended several routes, while WestJet is consolidating flights and Air Transat has announced capacity cuts.
Despite having domestic refining advantages, experts say Canadian travellers could still face higher fares and more cancellations if fuel prices remain elevated.
“Even some of the major (airlines) could be in trouble. It’s not going to be a pretty picture,” Gradek said.
“The question right now is how high fuel prices are going to go?” he added.
Passengers who booked directly with Spirit will receive automatic refunds, while those who used third-party services are being told to contact their provider.
Compensation for guests who booked flights using other methods, including vouchers, credit or Free Spirit points, will be determined at a later date through the bankruptcy process.
More details can be found on the Spirit Airlines website.
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