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Saturday, May 2, 2026
Spirit Airlines goes out of business after 34 years as fuel prices soar amid Iran war
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Bankrupt discount carrier Spirit Airlines ceases operations, the industry’s first casualty linked to the Iran war, after failing to secure creditor support for a US government bailout plan.
The collapse of the first carrier due to a doubling in jet fuel prices during the two-month-old Iran war will cost thousands of jobs.
It is a blow to US President Donald Trump, who had proposed $500 million to save Spirit despite opposition from some of his closest advisers and many Republicans in Congress.
Trump floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years, with jet fuel prices soaring because of the Iran war.
No US carrier of Spirit’s size — it accounted for 5 percent of US flights at one point — has liquidated in two decades. Spirit helped keep fares lower in markets where it competed against major carriers.
The Times of Israel Community.