Spirit Airlines is going out of business after 34 years, at least in part because of rising oil prices, according to a press release announcing the closure Saturday.Related video above: Trump says gas prices will go down when Iran War ends even as gas prices reach highest levels since 2022Spirit immediately canceled flights and cut off customer service, leaving some passengers scrambling to rebook on other airlines.”Unfortunately, despite the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook. With no additional funding available to the Company, Spirit had no choice but to begin this wind-down,” the press release said. The war between the U.S. and Iran has rocked the airline industry as jet fuel prices have skyrocketed. The average price per gallon in the U.S. currently sits around $4.13 per gallon, compared to around $2.50 before the war started, according to a snapshot of jet fuel costs in major American cities.Our Get the Facts Data Team recently spoke to aviation experts who warned that elevated costs are already trickling down to travelers in the form of higher baggage fees and ticket prices. The Trump administration has insisted that fuel price shocks from the war will be temporary and will subside once the conflict ends. At a press conference Saturday morning, Transportation Secretary Sean Duffy blamed the Biden administration for blocking a proposed merger between Spirit and JetBlue. He argued Spirit “was in dire straits long before the war with Iran.” “Their model wasn’t working. They couldn’t get to fiscal health,” Duffy said. “The war was not the impetus for Spirit.” The Trump administration had considered a government bailout to keep Spirit afloat, but a deal was not reached. Duffy addressed the possibility of bailing out other airlines struggling with higher costs. “At this point, I don’t think it’s necessary. They do have access to cash. If they want to come to the U.S. government, we would be a lender of last resort,” Duffy said. The Department of Transportation has announced a series of actions in coordination with U.S. carriers to support Spirit ticket holders dealing with flight cancellations, as well as the general flying public and impacted employees. This is a developing story. Check back for updates.
Spirit Airlines is going out of business after 34 years, at least in part because of rising oil prices, according to a press release announcing the closure Saturday.
Related video above: Trump says gas prices will go down when Iran War ends even as gas prices reach highest levels since 2022
Spirit immediately canceled flights and cut off customer service, leaving some passengers scrambling to rebook on other airlines.
“Unfortunately, despite the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook. With no additional funding available to the Company, Spirit had no choice but to begin this wind-down,” the press release said.
The war between the U.S. and Iran has rocked the airline industry as jet fuel prices have skyrocketed. The average price per gallon in the U.S. currently sits around $4.13 per gallon, compared to around $2.50 before the war started, according to a snapshot of jet fuel costs in major American cities.
Our Get the Facts Data Team recently spoke to aviation experts who warned that elevated costs are already trickling down to travelers in the form of higher baggage fees and ticket prices.
The Trump administration has insisted that fuel price shocks from the war will be temporary and will subside once the conflict ends.
At a press conference Saturday morning, Transportation Secretary Sean Duffy blamed the Biden administration for blocking a proposed merger between Spirit and JetBlue. He argued Spirit “was in dire straits long before the war with Iran.”
“Their model wasn’t working. They couldn’t get to fiscal health,” Duffy said. “The war was not the impetus for Spirit.”
The Trump administration had considered a government bailout to keep Spirit afloat, but a deal was not reached. Duffy addressed the possibility of bailing out other airlines struggling with higher costs.
“At this point, I don’t think it’s necessary. They do have access to cash. If they want to come to the U.S. government, we would be a lender of last resort,” Duffy said.
The Department of Transportation has announced a series of actions in coordination with U.S. carriers to support Spirit ticket holders dealing with flight cancellations, as well as the general flying public and impacted employees.
This is a developing story. Check back for updates.