Spirit Airlines Shuts Down as Iran War Doubles Jet Fuel, Midwest Gas Hits $4.58 Crushing Sentiment

Spirit Airlines halted operations on May 2, 2026, after jet fuel prices doubled from U.S.-Iran war escalations and Strait of Hormuz disruptions, erasing recovery and removing 1.8%–3.4% U.S. capacity with 20% fare hikes forecast. Gas prices surged $1.12 year-over-year to over $4/gal nationally—peaking at $4.58 in Michigan—driving consumer sentiment to a record low amid refinery outages and falling inventories. The crisis ignited March 2 with Hormuz closure halting 20M bpd (20% global oil), propelling WTI/Brent above $100 despite 172M U.S. SPR and 400M IEA barrel releases; airlines canceled flights and raised fares up to 9% by March 11 as fuel hit 25% of costs.