Iran war and fuel costs hit airline profits; Spirit Airlines collapses amid bailout rejection

Spirit Airlines ceased operations after creditors rejected a U.S. government bailout, citing soaring jet fuel costs linked to the Iran war and the Strait of Hormuz closure. Kevin Hassett, White House economic advisor, said the conflict will impact airline profits for about a quarter but noted most airlines remain financially healthy due to fuel hedging strategies. Transportation Secretary Sean Duffy highlighted Spirit's pre-existing financial struggles and bankruptcy history as key reasons for its collapse. Other major airlines are helping stranded Spirit passengers with lower fares to return home.