Spirit Airlines Collapses As Iran War Fuel Crisis Bites

Spirit Airlines shut down on Saturday after collapsing under jet fuel costs that have more than doubled since the war on Iran began.

The carrier, in its second bankruptcy in under a year, had assumed fuel costs of $2.24 per gallon in 2026 but watched prices spike to $4.51 as Iran’s chokehold on the Strait of Hormuz tightened.

A $500 million Trump administration rescue package collapsed when creditors rejected the terms. It is the first major US airline to fail in 25 years and has cost 17,000 jobs, stranding millions of ticketholders.

Ryanair, Vietnam Airlines, AirAsia and Scandinavian Airlines have all signalled route reductions.

American Airlines warned every cent on jet fuel costs it $50 million a year, while United expects up to $11 billion in extra annual costs.