Bankrupt Spirit Airlines suspended operations on Saturday, the industry’s first casualty linked to the Iran war, after it failed to secure creditor support for a US government bailout.
The shipwreck following a doubling of jet fuel prices during the two-month Iran war will cost thousands of jobs. It is a blow to US President Donald Trump, who had proposed US$500 million to save Roho despite opposition from some of his closest advisers and many Republican members of Congress.
No US carrier of Spirit’s size — it accounted for 5 percent of US flights at one time — has gone out of business in two decades. Spirit helped keep fares low in markets where it competed with major carriers.
Spirit’s board meeting ended without an agreement to save the company, a person close to the discussions said late on Friday.
“Unfortunately, despite the company’s efforts, recent material increases in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” Spirit said in a statement announcing the “orderly decline in operations”.
All flights have been cancelled, the statement said, urging passengers not to go to the airport.
