00:00Bankrupt discount carrier Spirit Airlines has stopped operating after failing to secure
00:05creditor support for a U.S. government bailout plan.
00:08It's the airline industry's first casualty linked to the Iran war, with a doubling of
00:13jet fuel prices in two months.
00:15The collapse of the carrier is a blow to President Donald Trump, who had proposed $500 million
00:20to save Spirit.
00:21If we could do it, we'd do it, but only if it's a good deal.
00:24Spirit accounted for 5% of U.S. flights at one point and helped keep fares competitive
00:29among other carriers.
00:31A statement from the airline said despite the company's efforts, the recent material increase
00:35in oil prices and other pressures on the business have significantly impacted Spirit's financial
00:40outlook.
00:41Global carriers are contending with surging jet fuel prices since the U.S.-Israeli strikes
00:46on Iran disrupted traffic through the strait of Hormuz.
00:49Jet fuel accounts for about a quarter of airlines operating expenses, exposing weaker airlines.
00:55Spirit had affordable fares for budget travellers who didn't need checked bags or seat-asided
00:59assignments.
01:00But demand tapered after the pandemic when passengers wanted more comfort.
01:04U.S. Transportation Secretary Sean Duffy said action is being taken to bring relief to Spirit's
01:10workforce and customers.
01:11Even American and United have drafted or crafted microsites for Spirit employees to potentially
01:20jump the line, jump the queue and get preferential treatment in the application process for the many
01:27airlines that are now hiring, whether it's pilots, flight attendants, baggage workers or even
01:32those who have worked in the call centres.
01:34Spirit shutdown will benefit its rivals.
01:37After the announcement, major U.S. carriers rolled out reduced fare options for affected passengers.
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