Trump Can't Lie Anymore: Legendary US Airline Collapses Due to Iran War, 17,000 People Unemployed

US President Donald J Trump can no longer deceive the public that the US economy will be fine amid the war with Iran. The US-based low-cost airline Spirit Airlines has officially begun halting operations and cancelling all its flights after talks with the Trump administration to secure a $500 million bailout reached an impasse.

Experts assess that the surge in aviation fuel prices due to the US-Israel war against Iran delivered the final blow to the pioneering ultralow-cost airline. The closure of Spirit’s operations after 34 years in the industry will result in around 17,000 staff losing their jobs, many passengers being stranded, and sparking doubts over the future of the budget aviation industry, reports Al Jazeera.

In an official statement on Saturday (2/5), Spirit Aviation Holdings, the parent company, announced it has initiated an orderly shutdown process. “All Spirit flights have been cancelled. We advise Spirit guests not to come to the airport,” the company wrote in its official statement.

The airline added that, despite various efforts, the significant rise in oil prices and other business pressures have drastically impacted the company’s financial prospects. According to data from aviation analytics firm Cirium, Spirit was scheduled to operate 4,119 domestic flights with a capacity of over 800,000 seats in the early May period.

Spirit Airlines has actually been facing financial difficulties for years. The airline has filed for bankruptcy twice, in November 2024 and August 2025, due to mounting losses, high debt, and intense competition.

Although it reached an agreement with creditors to exit bankruptcy status, the outbreak of war with Iran posed a major obstacle. The cost of aviation turbine fuel (ATF) surged to $4.51 per gallon by the end of April, far exceeding the company’s restructuring plan assumptions of around $2 per gallon.