Spirit Airlines Collapses as Jet Fuel Prices Double After U.S.-Israel Attack on Iran
Updated
Updated · CNBC · May 23
Spirit Airlines Collapses as Jet Fuel Prices Double After U.S.-Israel Attack on Iran
3 articles · Updated · CNBC · May 23
Spirit shut down earlier this month after failing to emerge from near back-to-back bankruptcies, partly blaming a jet-fuel spike in what became the biggest U.S. airline collapse in decades.
Jet fuel doubled in less than three months after the U.S. and Israel attacked Iran, leaving a key shipping channel effectively closed and pushing airlines to pass higher costs to travelers.
Domestic round-trip airfares averaged $623 in April, the highest in nearly four years, while carriers also trimmed growth and cut some routes, reducing low-fare seat supply further after Spirit's demise.
GasBuddy sees U.S. gasoline at $4.48 on Memorial Day versus $3.14 a year earlier, and potentially $4.80 through Labor Day if the Strait of Hormuz stays closed.
Travel demand is holding up but softening at the margin: TSA expects 18.3 million screenings over the holiday period versus 18.5 million last year, and AAA sees holiday driving up just 0.1%.
After Spirit Airlines' collapse, is the era of the ultra-low-cost American flight officially over?
With the Strait of Hormuz closed, which global economic chokepoint is the next to face a crisis?
Can this unprecedented oil shock finally force a global shift away from fossil fuels in transportation?