Major airlines and the U.S. government scrambled to help stranded passengers and employees after bankrupt discount carrier Spirit Airlines ceased operations on Saturday, the industry’s first casualty linked to the Iran war.
The collapse overnight of the carrier following a doubling in jet fuel prices during the two-month-old Iran war will cost thousands of jobs. It is a blow to President Donald Trump, who had proposed $500 million to save Spirit despite opposition from some of his closest advisers and many Republicans in Congress.
Spirit’s demise highlights the unintended consequences of the U.S.-Israel war against Iran, despite an uneasy ceasefire. While Spirit was already struggling to turn a profit before the fuel shock, global carriers are contending with surging jet fuel prices as Iran continues to halt nearly all traffic through the Strait of Hormuz and the U.S. Navy blockades Iranian ports.