Transportation

Duffy: Iran war ‘was not the impetus’ for Spirit shutting down amid rising fuel prices

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by Sarah Davis - 05/02/26 5:52 PM ET

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by Sarah Davis - 05/02/26 5:52 PM ET

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Transportation Secretary Sean Duffy rebuffed the suggestion that Spirit Airlines was forced to shut down as a result of rising fuel prices brought on by the Iran war.

“Spirit was in dire straits long before the war with Iran,” Duffy said during a press conference in New Jersey on Saturday.

“Multiple times, they filed for bankruptcy. Their model wasn’t working,” the Trump administration official said. “They couldn’t get to fiscal health, so this was not the impetus. The war was not the impetus for Spirit.”

Spirit announced on Saturday that the company was “winding down its global operations, effective immediately.” The airline filed for bankruptcy twice in the last year.

Spirit Airlines CEO Dave Davis told The Wall Street Journal that the airline’s recovery plan would have succeeded if not for the Iran war and surging energy prices. He noted the financial strain is impacting other airlines as well.

“Everybody burning cash—we just had a smaller pile to start with,” he told the outlet. “They’re not that far behind us in the race.”

President Trump previously floated a $500 billion government bailout for Spirit, but the plan fell through after opposition from Republican legislators.

The U.S.’s war with Iran has placed a tremendous strain on global energy prices, sending the cost of gasoline and jet fuel skyrocketing. Brent crude oil — the international standard — briefly spiked to a four-year high at $126 per barrel on Thursday morning.

Several budget airlines have requested a $2.5 billion bailout from the Trump administration during this period of heightened fuel costs. The Association of Value Airlines called its request “a necessary and targeted measure to stabilize operations and keep airfares affordable.”

Duffy said on Saturday that these loans are not necessary “at this point” and that the requests are “based on opportunity,” not immediate need.

“If they want to come to the U.S. government, we would be a lender of last resort,” Duffy said. “If they can find dollars in the private markets, I think that’s better for them.”

The secretary noted that this loan would have to go through Congress for approval and that there would “have to be a real need” for financial assistance from these companies.

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