WASHINGTON, May 2 (Reuters) - Bankrupt discount carrier Spirit Airlines ceased operations on Saturday, the industry’s first casualty linked to the Iran war, after failing to secure creditor support for a U.S. government bailout plan.
The collapse of the carrier following a doubling in jet fuel prices during the two-month-old Iran war will cost thousands of jobs. It is a blow to President Donald Trump, who had proposed $500 million to save Spirit despite opposition from some of his closest advisers and many Republicans in Congress.
No U.S. carrier of Spirit’s size - it accounted for 5% of U.S. flights at one point - has liquidated in two decades. Spirit helped keep fares lower in markets where it competed against major carriers.
All flights canceled, rivals to benefit
A Spirit board meeting had ended without an agreement to rescue the company, a person close to the discussions told Reuters late on Friday.
