Spirit Lays Off 200 Workers In Newark As Bankrupt Airline Goes Out Of Business

ESSEX COUNTY, NJ — Spirit Airlines has announced 201 layoffs in Newark in the wake of its high-profile and abrupt shutdown.

The latest Worker Adjustment and Retraining Notification Act (WARN) notices on the New Jersey Department of Labor and Workforce Development website include 201 jobs with Spirit Airlines, which operates at Newark Airport.

The layoffs began May 2, according to the notice.

WARN notices offer protection to workers, their families and communities by requiring employers to provide notice in advance of plant closings and mass layoffs.

Spirit Airlines – which became known for offering budget airfare – recently announced that it is going out of business after 33 years, a decision that impacts nearly 17,000 employees. The company said all flights had been canceled.

The Trump administration had considered a government bailout for Spirit Airlines to keep it from going under, but a deal was not reached.

• Related: Spirit Airlines To End Operations, Cancels All Flights

Spirit Aviation Holdings Inc., the parent company of Spirit Airlines, released additional information about the shutdown in a statement earlier this month:

“The wind-down follows the company’s extensive and comprehensive efforts to restructure the business and pursue transactions to strengthen Spirit’s financial position and create a sustainable path forward. Unfortunately, despite the company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook. With no additional funding available to the company, Spirit had no choice but to begin this wind-down.”

“In March 2026, we reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business,” CEO Dave Davis said. “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.”

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

The airline said it will automatically process refunds for any flights purchased through Spirit with a credit or debit card to the original form of payment. Guests who booked flights via a travel agent should contact the travel agent directly to request a refund. Compensation for Guests who booked flights using any other methods – including a voucher, credit or Free Spirit points – will be determined at a later date through the bankruptcy process.

Customers can find more information online here.

• Related: Hundreds Of Layoffs Planned At 3 Companies In Newark

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