Spirit Airlines, a budget carrier in the United States, has officially ceased operations, becoming the first major airline to collapse due to the ongoing Iran war. The airline's downfall was triggered by a significant increase in jet fuel prices, which surged from an anticipated $2.24 per gallon to approximately $4.51 by late April 2023. This spike was caused by disruptions in the Strait of Hormuz amid the conflict. Spirit, which once accounted for about 5% of US flights and employed roughly 17,000 people, had been struggling financially even before the war, as travelers shifted towards more comfort-oriented flying options. The airline's restructuring plan was derailed when it failed to secure a $500 million government bailout, leading to its decision to wind down operations immediately. The collapse is expected to impact thousands of jobs and reduce competition in the aviation market, potentially leading to higher fares for budget-conscious travelers. Competitors are already capitalizing on Spirit's absence, with JetBlue expanding its services from key hubs. This incident underscores the fragility of the aviation industry, which is facing its worst crisis since the COVID-19 pandemic, with experts warning that the effects of the Iran war could push other vulnerable airlines towards similar fates.