The "boomerang" effect of the Iran conflict becomes apparent as a US airline suspends operations due to the impact of rising oil prices.
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This low-cost airline said in a statement: "Despite the company’s efforts to respond, recent significant increases in oil prices and other business pressures have seriously impacted the company’s financial outlook." According to Bloomberg News, Spirit Airlines has faced operational difficulties for many years and has filed for bankruptcy protection twice within one year. The company had reached agreements with creditors on debt reduction and lowering fleet costs, planning to emerge from its second bankruptcy this summer. Its 2026 operational plan was based on a prediction that jet fuel would cost $2.24 per gallon. After the outbreak of conflict in Iran, shipping in the Strait of Hormuz was disrupted, and as of the end of April, jet fuel prices had risen to about $4.51 per gallon, resulting in a financial crisis for the company.
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