Spirit Airlines Shuts Down Due to Iran War Fuel Crisis. Other Low-Cost Airlines Could Be Next

The low-cost Spirit Airlines announced Saturday that it has officially gone out of business after years of financial hardship, citing rising fuel costs resulting from the Iran War as the final straw.The company said it had undergone “extensive and comprehensive efforts to restructure the business” following two bankruptcy filings in 2024 and 2025, but added that the “sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative.”The airline informed customers that all flights had been canceled, and that refunds were being processed, but that they should look to rebook flights with other providers.Spirit Airlines was founded in 1983 as Charter One Airlines, a charter tour operator. It was rebranded as Spirit in 1992, becoming a passenger airline and a pioneer of low-cost air travel, offering pared-down services in exchange for cheap base fares. It flew around 30 million passengers in 2025, reflecting a sharp drop from a peak of over 44 million in 2023 and 2024, according to President Donald Trump and his Administration floated a potential $500 million federal bailout for the Florida-based airline, but bondholders could not reach an agreement on how to restructure and ultimately save the company with the