Spirit Airlines has filed for bankruptcy and is preparing to halt operations entirely, becoming the first US carrier to partially collapse under the impact of surging jet fuel prices tied to the Iran war, according to sources cited by Reuters.
The airline is expected to suspend flights after management failed to secure a last-minute rescue deal, marking a dramatic downturn for a carrier that once accounted for roughly 5 percent of domestic US flights and played a key role in keeping ticket prices low.
Efforts to save the company faltered despite a proposed financial support package of up to $500 million put forward by the administration of Donald Trump. The plan reportedly faced resistance from some advisers and Republican lawmakers in Congress, ultimately preventing a bailout agreement.
The collapse is set to have far-reaching consequences across the US aviation market. Thousands of jobs are at risk, while millions of passengers may face disruption and limited rebooking options. Analysts warn that reduced capacity could drive ticket prices higher as competition declines.
In response, the White House has initiated talks with major airlines to help absorb affected passengers.
Carriers including United Airlines, American Airlines, and JetBlue Airways have indicated a willingness to provide partial support to stranded customers.
US Transportation Secretary Sean Duffy said efforts were made to find a buyer for Spirit Airlines, but no company expressed interest in acquiring the struggling carrier.
President Trump confirmed that a final proposal had been presented to the airline and its creditors, while officials continue to coordinate with other carriers to manage the fallout from the shutdown.
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