Spirit Airlines, the Florida-based budget carrier, ceased all operations on Saturday amid a severe fuel crisis triggered by the ongoing US-Israeli war on Iran, now in its second month.
The airline, which accounted for about 5 percent of US flights, became the first major casualty linked to jet fuel prices that have doubled in recent months. Operations halted early Saturday morning, with no aircraft in the air, call centers closed, and staff absent from ticket counters. Passengers with scheduled flights were advised not to go to airports, as no assistance would be available.
Spirit had filed for Chapter 11 bankruptcy protection in 2024 and was pursuing a restructuring plan to exit by early summer. However, creditors objected to the proposal, citing unaccounted higher fuel costs and violations of loan terms. Lenders, represented by Citibank, claimed the airline was already in default, allowing potential asset seizures. JPMorgan analysts estimated the price surge would add roughly $360 million to annual expenses, surpassing the carrier’s $337 million cash reserves at year-end.
President Donald Trump proposed $500 million in aid to save the airline, but faced opposition from advisers and Republicans in Congress. The shutdown ends 34 years of service and will result in thousands of job losses.