Spirit Airlines begins ‘wind-down’, cancels all flights over fuel crisis

The collapse of the US-based budget carrier due to a doubling in jet fuel prices will cost thousands of jobs.Low-cost US carrier Spirit Airlines has said that all of its flights have been cancelled as it started an “orderly wind-down of operations,” after a potential White House bailout fell through.“Spirit Aviation Holdings, Inc., parent company of Spirit Airlines … today regretfully announced that the Company has started an orderly wind-down of operations, effective immediately. All Spirit flights have been cancelled, and Spirit Guests should not go to the airport,” the airline said in a statement in the early hours of Saturday.Recommended Stories list of 4 itemslist 1 of 4Lufthansa cuts 20,000 flights as Iran war causes jet fuel shortagelist 2 of 4EU eyes options as Iran conflict threatens jet fuel shortageslist 3 of 4Commercial flights from Tehran’s main airport resume amid cautious normalcylist 4 of 4Jet fuel shortage: Why Iran war could ground flights in Europeend of listSpirit had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats, according to the latest data from Cirium.The collapse of the carrier due to a doubling in jet fuel prices during the two-month-old Iran war will cost thousands of jobs. It is also a blow to US President Donald Trump, who had proposed $500m to save Spirit despite opposition from some of his closest advisers and many Republicans in Congress.Spirit had reached a deal with its lenders that would have helped it emerge from its second bankruptcy by late spring or early summer. But those plans derailed after the US war on Iran triggered a spike in jet fuel prices, upending Spirit’s cost projections and complicating its bankruptcy exit.A Spirit board meeting had ended without an agreement to rescue the company, a person close to the discussions told the Reuters news agency late on Friday.“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,” Spirit said in a statement announcing its “orderly wind-down”.