The demise of American budget carrier Spirit Airlines reflects how the jet fuel crisis stemming from the Iran war is imperiling the global travel industry, analysts said.
The company abruptly shut down on Saturday after talks for a government bailout fell apart, stranding passengers and leaving 17,000 people out of jobs.
A group of holdout creditors doomed the bailout deal, Semafor reported.
Spirit had hoped to morph into a smaller operation this summer, but those plans were complicated as jet fuel prices spiked.
Airlines around the world are cutting flights and profit outlooks, putting disproportionate pressure on smaller carriers that cannot easily pass on costs to travelers. “A reordering of the industry looms,” The Wall Street Journal wrote.