Labor Dept. activates response to assist employees impacted by Spirit shutdown.

A Spirit Airlines commercial flight takes off from Palm Beach International Airport in West Palm Beach, Fla., on Nov. 21, 2024. The island Labor and Human Resources Department is mobilizing its resources to guide laid‑off Spirit workers through available benefits and employment services. (Tom Brenner/The New York Times)

By THE STAR STAFF

The Puerto Rico Department of Labor and Human Resources (DTRH by its initials in Spanish) activated an emergency response on Monday to assist employees affected by the sudden shutdown of Spirit Airlines’ operations on the island.

Labor Secretary María del Pilar Vélez Casanova said the agency is mobilizing its resources to guide laid‑off workers through available benefits and employment services, in line with an initiative supported by Gov. Jenniffer González Colón.

The DTRH made its digital platform available to those affected to file applications for unemployment insurance. Workers can access trabajo.pr.gov and complete the process in the “Initial Unemployment Claim” section. Subsequently, they must submit the required documentation through the portal in the “Document Submission” section.

“The situation faced by these workers and their families is complex, and from the department, we are focused on providing them with immediate support and clear guidance so that they can access the available aid,” Vélez Casanova said.

In addition to the unemployment process, the agency mobilized staff across its offices on the island to provide direct guidance on employment programs and market opportunities. Those efforts include advisory services for job search, registration on the Employment and Recruitment Portal to Facilitate Labor Integration, or PERFIL by its acronym in Spanish, and other recruitment initiatives to facilitate their transition to new job opportunities.

Spirit Airlines, the ultra‑low‑cost U.S. carrier known for its bright yellow aircraft and discount fares, ceased all operations immediately on Saturday, after announcing an “orderly wind‑down” of the company. The decision followed years of financial instability, including two bankruptcy filings since 2024, mounting debt, and unsuccessful efforts to secure new financing or a federal rescue.

According to the airline, the shutdown was precipitated by a sharp increase in jet fuel prices, which it attributed to geopolitical instability related to the war involving Iran, combined with already weakened finances. Federal officials, however, noted that Spirit had been in severe financial distress well before the fuel price surge, citing more than $2.5 billion in losses since 2020 and a business model that struggled to compete in a crowded low‑cost market.

Spirit’s collapse came after several failed recovery attempts, including a blocked merger with JetBlue in 2024 and negotiations in recent days for a $500 million federal bailout, which ultimately fell apart when creditors and the government could not reach an agreement. With no new funding available, the company canceled all remaining flights and began liquidating assets to repay creditors.

The airline had operated in Puerto Rico since 2001, serving San Juan and other destinations as part of a broader network across the Caribbean and Latin America. Its shutdown left thousands of passengers stranded and some 17,000 direct and indirect employees unemployed worldwide, including an undetermined number of workers on the island. Puerto Rico officials have stated that while the impact on tourism is expected to be limited, the employment consequences of the airline’s closure are still being assessed.