Spirit Airlines has officially ceased operations, becoming the first airline casualty linked to the ongoing Iran war, which has caused a dramatic rise in jet fuel prices. The airline failed to secure a $500 million bailout from the U.S. government, leading to significant job losses and the disruption of thousands of flights. At its peak, Spirit accounted for 5% of U.S. flights, providing competitive pricing in the market. The airline's restructuring plan had anticipated jet fuel prices of around $2.24 per gallon in 2026, but prices soared to approximately $4.51 per gallon by late April, crippling its financial viability. Transportation Secretary Sean Duffy noted the difficulty in finding buyers for Spirit, emphasizing the airline's dire situation. The collapse highlights how the fuel-price shock from the Iran conflict has exposed vulnerabilities in weaker airlines, with Spirit's stock plunging 25% prior to its closure. Meanwhile, shares of competitors like Frontier Airlines rose by 10%, reflecting market shifts following Spirit's exit.