TICO issues closure advisory for Spirit Airlines

TICO has issued a notice for U.S.-based Spirit Airlines, which ceased operations on May 2, 2026

“Spirit Airlines has indicated that airfare purchased directly through them with a credit or debit card will be reimbursed automatically to the original form of payment,” TICO wrote in a bulletin.

For airfare purchased through a travel agent, Spirit Airlines is asking customers to contact their travel agency for information about accessing a refund.

For more information, visit here.

“Consumers who purchased Spirit Airlines travel services through a TICO-registered travel agency or booking website, and do not receive a refund through Spirit Airlines or the travel agency, may have an eligible claim through the Ontario Travel Industry Compensation Fund,” says TICO.

For information about Compensation Fund eligibility, please click here. The deadline to file a claim with the Compensation Fund is November 3, 2026.

Spirit shuts down

On Saturday (May 2), Spirit has announced it is shutting down after failing to secure a $500 million (USD) bailout from the Trump administration.

The budget carrier had been negotiating with the U.S. government on a rescue package that could have kept it operating. However, talks ultimately broke down.

Spirit had only recently been working through its second bankruptcy in recent years. But rising jet fuel costs, linked to the U.S.-Israel conflict involving Iran, proved too much for the struggling airline.

CEO Dave Davis said a restructuring agreement reached in March 2026 could have allowed the company to continue operating, but the sharp increase in fuel prices forced the company to shut down.

“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,” Davis stated.

By late April, Spirit believed its bailout agreement with the Trump administration was close to being finalized.

However, after the deal collapsed, Trump said on Friday in an interview with CBS that the airline had been given “a final proposal” to remain operational.

The earlier plan – which would have resulted in the U.S. government effectively taking up to a 90 per cent stake in the airline – met strong resistance from Wall Street, lawmakers on Capitol Hill, and even within Trump’s own cabinet.

Meanwhile, other carriers—including Delta Air Lines, United Airlines, American Airlines, and Frontier Airlines—have introduced discounted “rescue fares” to help affected passengers.

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