Spirit airlines sinks during bankruptcy rescue amid Iran war fallout

ALBAWABA - Rising jet fuel prices have caused Spirit Airlines to give up on its recovery plan and start shutting down after failing to get a last-minute loan.

The airline confirmed that all flights would be canceled and customer service would be shut down as part of an organized liquidation process. The move comes after failed efforts to get out of its second bankruptcy.

Even though a large group of creditors backed the plan, talks with the Trump government about a possible $500 million rescue package fell through. The company's demise was sealed by the lack of agreement.

Millions of people who had planned to travel in the next few months will likely have to change their plans because of the shutdown. Also, about 17,000 workers will lose their jobs because the business will no longer be running.

After Spirit leaves the market, analysts say that ticket prices could go up across the U.S. airline industry because there will be less competition without a big low-cost carrier.

Earlier in the day, the carrier kept flying even though things were uncertain, but rising fuel prices were still making it hard to get back on track. The company has now decided to shut down its whole business because it has no good financial plan.