What Spirit Airlines’ implosion means for O’Hare and who’s offering rescue fares

Spirit Airlines sudden shutdown last week not only stranded passengers and employees but also raises questions about potential fallout for O’Hare International Airport.

The discount airline canceled all flights Saturday, announcing “an orderly wind down of operations” after spiraling jet fuel prices undercut its already precarious finances.

“A one-two punch doomed Spirit — a relatively soft domestic travel market coupled with sky-high fuel prices,” aviation expert and DePaul University Professor Joseph Schwieterman said.

Several airlines, including United, American and JetBlue, are offering rescue fares to passengers with canceled flights for a limited time. Spirit officials said the airline had automatically refunded tickets paid for with credit or debit cards.

Spirit was a “valued partner,” providing service from Chicago for over 25 years, and accounting for about 1.2% of scheduled departing seats at O'Hare, Chicago Department of Aviation Communications Director Kevin Bargnes said.

“O’Hare continues to be the best-connected airport in the United States, with service to 280 destinations on nearly 50 carriers, ensuring travelers have a wide range of options,” Bargnes added.

He pointed out that JetBlue recently announced it would start twice-daily service between O’Hare and Fort Lauderdale on July 9, which restores a key leisure route Spirit previously offered.

Spirit filed for bankruptcy in late 2024 amid pandemic-related losses and opposition from the U.S. Department of Justice on a merger with JetBlue.

The airline reached an agreement with bondholders in March on restructuring but the spike in fuel prices was devastating, CEO Dave Davis said in a statement.

“Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure,” Davis explained.

Schwieterman said “Spirit’s shutdown is a blow for O'Hare due to its role as a discounter, particularly on the Chicago to Florida and West Coast routes.

“None of the other ultra-low-cost airlines, Allegiant, Breeze, Frontier, or Sun Country, will likely fill the niche vacated by Spirit, which bullishly competed head-to-head against the airline giants.”

The airline’s demise “is a lesson to Washington, which blocked several attempts by it to forge alliances with stronger airlines,” Schwieterman added.

Spirit’s four gates at O’Hare have already been disposed of, with American acquiring two early this year and United picking up the remainder.

Customers with refund questions can visit the airline’s website at spiritrestructuring.com.