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 first air carrier due to the doubling of jet fuel prices in a two-month long war in Iran will cost thousands of jobs after a government bailout deal didn’t pan out.
Of the potential bailout, Transportation Secretary Sean Duffy said Saturday “we often times don’t have half a billion dollars laying around.”
Trump said on Friday afternoon that the government had offered a “final offer,” a taxpayer funded takeover.
No other carrier the size of Spirit, which at one time accounted for 5% of U.S. flights, has liquidated in two decades. Spirit’s low prices helped keep fares lower in the major airline markets.
It’s Biden’s fault, according to the White House.
The White House and Secretary Duffy blamed President Biden and Pete Buttigieg for opposing a merger between Spirit and Jet Blue in 2023.
Spirit’s pilots, flight attendants and support staff said a collapse will put thousands of workers out of jobs beyond Spirit employees.
The loss of the low-cost airline will reduce competition and increase airfares, impacting up to 17,000 jobs, according to Spirit lawyer Marshall Huebner.
Budget-conscious and leisure travelers would likely feel Spirit’s absence the most, especially in places where the airline has a big footprint such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando.