WASHINGTON (Reuters) — Bankrupt discount carrier Spirit Airlines ceased operations on Saturday, the industry’s first casualty linked to the Iran war, after failing to ‌secure creditor support for a US government bailout plan.

The collapse of the carrier following a doubling in jet fuel prices during the two-month-old Iran war will cost thousands of jobs.

It is a blow to US President Donald Trump, who had proposed $500 million to save Spirit despite opposition from some of his closest advisers and many Republicans in Congress.

No US carrier of Spirit’s size — it accounted for 5 percent of US flights at one point — has liquidated in two decades. Spirit helped keep fares lower in markets where it ​competed against major carriers.

A Spirit board meeting had ended without an agreement to rescue the company, a person close to the discussions told Reuters late on Friday.

“Unfortunately, despite ​the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” Spirit said in a ⁠statement announcing “an orderly wind-down of operations.”

All flights have been canceled, the statement said, asking passengers not to go to the airport.

Spirit had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats, according ​to data from aviation analytics firm Cirium.

Global carriers are contending with surging jet fuel prices since the US-Israeli strikes on Iran on February 28 disrupted traffic through the Strait of Hormuz, in the air travel industry’s worst crisis since the COVID-19 ​pandemic.

Spirit was already struggling to turn a profit before the fuel shock.

Spirit built its brand around affordable fares for........

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