Low-cost U.S. carrier Spirit Airlines has halted operations, becoming the first airline to collapse financially amid the ongoing war involving Iran.

The airline’s shutdown follows a failure to secure backing from creditors for a financial support plan proposed by the U.S. government. The inability to reach an agreement effectively cut off access to emergency funding, leaving the company unable to sustain operations, News.Az reports, citing Reuters.

Industry analysts point to a sharp surge in jet fuel prices as a decisive factor. Over the past two months, fuel costs have reportedly doubled due to heightened geopolitical tensions, placing significant pressure on airline balance sheets—particularly low-cost carriers with tighter margins. For Spirit Airlines, which operates on a high-efficiency, low-cost model, the spike proved unsustainable.

The closure is expected to result in thousands of job losses, impacting not only airline staff but also associated sectors such as airport services and maintenance providers. The broader aviation industry is now facing increased scrutiny as concerns grow over the financial resilience of carriers in a volatile global environment.

The development is also being viewed as a political setback for U.S. President Donald Trump. Reports indicate that he had proposed allocating $500 million to support Spirit Airlines, despite opposition from some advisers and Republican lawmakers in Congress. The failure of the rescue effort underscores divisions within the administration over economic intervention during the crisis.

Experts warn that if fuel prices remain elevated and geopolitical instability persists, additional airlines—particularly budget operators—could face similar financial distress in the coming months.

News.Az 

By Faig Mahmudov