Spirit Airlines said in a court filing that the spike in oil prices resulting from the Iran war played a key role in its decision to cease operations.
While the company did not mention the conflict specifically, it made reference to "recent geopolitical events" that "resulted in a massive and sustained increase in fuel prices."
"The Debtors and their advisors searched for increased capital and any sources of savings or liquidity, leaving no option unexplored," the document adds, according to NBC News.
"It became clear on Thursday that sufficient incremental liquidity would not be found, and that there were no longer any viable paths to a restructuring or continued operations."
The company ended up ceasing operations on Saturday, saying on its website that it had "started an orderly wind-down of our operations" and cancelled all its flights.
"We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our guests for many years to come," reads another passage of the parting message.
The airline had more than 4,000 domestic flights scheduled through May 15, Reuters detailed, citing data from aviation analytics company Cirium.
U.S. Transportation Secretary Sean Duffy said on ABC's "This Week" that the company was "bleeding money" and its collapse had been "in the works for some time."
President Donald Trump had not ruled out rescuing the company on Friday afternoon, saying he was still "looking" at the possibility. "We're looking at Spirit and if we can help them, we will. But we have to come first," he said. However, a deal was not reached.
The possibility had also led others to also ask the government for a bailout. The Association of Value Airlines (AVA), a trade organization for value airlines, said that its members were working collaboratively and looking for help from the Trump administration. Last week, member air carriers, which include Spirit, Frontier, Avelo Air, Allegiant Air, and Sun Country, met with Transportation Secretary Sean Duffy.
AVA said that it has asked for the creation of a $2.5 billion liquidity pool to be used only to offset "incremental fuel costs, as a necessary and targeted measure to stabilize operations and keep airfares affordable."
Spirit had been struggling to exit Chapter 11 bankruptcy for the second time in under a year. The airline initially filed for bankruptcy protection in November 2024 after reporting heavy losses and debt pressure, and again in 2025 following a failed restructuring attempt.
