Spirit Airlines faces shutdown due to financial crisis: How is it linked to Iran war?

United States Spirit Airlines is considering shutting down its operations amid financial crises and rising jet fuel prices.

According to a report by Wall Street Journal, the carrier is going through serious financial crises and has been unsuccessful in reaching a deal with its creditors.

The possible bail out program announced by the U.S. government under the Trump Administration has also been stalled, pushing the company close to liquidation.

Trump was considering a potential $500 million loan for the carrier to continue operations, or buying the Airlines. President Trump said, “We’re thinking about doing it, helping them out, meaning bailing them out, or buying it.”

He added that the government could earn a considerable profit after selling it at a profitable price in case oil prices come down, which are directly linked to the ongoing U.S.-Israel war against Iran.

Airlines across the world have been struggling because of jet fuel crises due to the closure of the Strait of Hormuz. Middle East countries export most of the jet fuel around the world; however, the closure of the key oil trade route has stalled the shipments thus causing the prices to skyrocket and also causing shortages.

If the Spirit Airlines proceeds to liquidation, it will mark the first time that a major carrier liquidates since the 2008 recession.

White House has blamed the previous Biden Administration for blocking the merger of Spirit Airlines with Jet Blue last year; the merger would have put both airlines on much stronger financial footing.