Spirit Airlines shut down operations last week, a move that’s already reshaping air travel at Atlantic City International Airport (ACY) and opening the door for other airlines to expand service.

In a statement released May 2, the carrier announced that its parent company, Spirit Aviation Holdings, Inc., has begun an “orderly wind-down of operations,” effective immediately. All flights were canceled, and customers were advised not to go to the airport.

The shutdown follows months of restructuring efforts aimed at stabilizing the company’s finances.

According to Spirit, a recent surge in fuel costs, combined with broader economic pressures, ultimately made continued operations unsustainable. The company said it lacked the hundreds of millions of dollars in additional liquidity needed to keep flying.

“For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible,” said CEO Dave Davis in the statement. He added that a restructuring agreement reached with bondholders in March 2026 could have allowed the airline to continue, but rising oil prices derailed those plans.

Spirit also acknowledged support from federal agencies, including the U.S. Department of Commerce and the U.S. Department of Transportation, as well as financial partners such as Citadel, Cyrus Capital and Ares Management Corp.

The air service said customers who booked directly with Spirit will receive automatic refunds to their original form of payment, while others must seek reimbursement through travel agents or the bankruptcy process.

For ACY, Spirit’s departure marks the loss of its most prominent airline — one that’s been at the airport for over 30 years. According to NBC10, approximately 75% of the airport’s passengers flew with Spirit from January to March.

However, aviation analysts say the airport has undergone similar changes before. According to reporting by OCNJ Daily, transportation analyst Tony Marino noted that about 10 carriers have cycled through ACY over the years.

Other airlines immediately stepped in to fill the gap.

Allegiant Air continues to operate nonstop flights from ACY to several Florida destinations, including Fort Lauderdale, Orlando/Sanford, St. Petersburg/Clearwater and Punta Gorda. The airline is also set to launch service to Myrtle Beach, South Carolina, on May 21.

On the same day Spirit announced its shutdown, Breeze Airways announced an expansion at ACY. Breeze will introduce four new nonstop routes, with service to Orlando beginning July 3, followed by Myrtle Beach and Fort Myers in October, and West Palm Beach in December. Introductory one-way fares start as low as $49.

The expansion builds on Breeze’s earlier announcement of routes to Charleston, Raleigh-Durham and Tampa, effectively more than doubling its destinations from Atlantic City.

Airport officials welcomed the investment, with South Jersey Transportation Authority Executive Director Stephen F. Dougherty calling it a reflection of strong regional demand.

“We appreciate Breeze Airways for its investment in Atlantic City International Airport and its introduction of new routes that maintain service to key destinations serving our region,” said Dougherty, who is also owner/operator of the Atlantic City International Airport, in the May 2 press release. “The timely launch of this service reflects the strength of the market and helps ensure passengers continue to have access to convenient, affordable destinations.”

Spirit directed guests to visit https://spiritrestructuring.com for more information about the wind-down process.

Julia graduated from Rider University in 2024 with a BA in multiplatform journalism and minor in social media strategies. In addition to reporting on local news for Shore Local, she is a social media strategist for small businesses. Connect with her: shorelocaljulia@gmail.com or @juliatrain on Instagram.