Spirit Airlines Shuts Down Amid Financial Struggles and Rising Fuel Costs

Mon, 04 May 2026 05:53:00 +0200

Spirit Airlines ceased operations on Saturday, citing skyrocketing fuel prices influenced by geopolitical tensions, including President Trump's military actions in Iran. However, top White House economic adviser Kevin Hassett criticized the airline, arguing that Spirit's repeated Chapter 11 filings and flawed business model were the real reasons for its collapse. Hassett noted that other airlines have managed to mitigate fuel cost spikes through strategic hedging. The airline's financial troubles were compounded by the cancellation of a merger with JetBlue, which Hassett attributed to the Biden administration. Despite discussions of a last-minute $500 million rescue plan during the Trump administration, efforts to save Spirit Airlines failed. Transportation Secretary Sean Duffy stated that the airline was struggling even before the Iran conflict and that Trump had attempted, unsuccessfully, to keep it afloat. Overall, the closure highlights how a combination of long-standing financial