Spirit Airlines, a pioneering U.S. ultra-low-cost carrier (ULCC), officially announced the cessation of operations on May 2, 2026. Adopting an even more aggressive low-cost, low-fare strategy than conventional low-cost carriers (LCCs), Spirit Airlines experienced rapid growth in the U.S. aviation market after 2006.

Through its ULCC business model, Spirit Airlines significantly influenced price competition and product design within the U.S. aviation market. As a result, the airline’s cessation of operations generated significant attention across the U.S. aviation industry and may have implications not only for a single airline’s exit from the market, but also for the future structure and competitive environment of the industry.

Given the important role played by Spirit Airlines, examining the background to and implications of its growth, deterioration in business conditions, two Chapter 11 bankruptcy filings, and eventual cessation of operations is important for understanding both the structural challenges of the ULCC model and broader changes in the U.S. aviation market. Furthermore, the case provides valuable insights into how changes in demand structures and competitive conditions can affect airline management.

Accordingly, this paper examines the development of Spirit Airlines, the deterioration of its business environment, its two Chapter 11 bankruptcy proceedings, the cessation of operations, and its impact on the U.S. aviation market, before presenting concluding observations and implications.