Spirit Airlines CEO and Trump Admin at Odds Over Iran War Role in Collapse

Transport Secretary Sean Duffy has pushed back on suggestions that Spirit Airlines had to shutdown because of rising fuel costs.

Gas and oil prices have risen sharply since the start of the Iran war, with the national average for a gallon of regular gas sitting at $4.433 – a rise of around a dollar since the war began, and almost half a dollar more than it cost a month ago. Increased fuel costs can push costs of other goods and services higher, with experts already highlighting a jump in costs for construction and housing.

However, Duffy has denied that rising fuel costs – a result of the conflict with Iran – as one of the main factors in the airline’s apparent demise.

During a press conference on Saturday in Newark, New Jersey shortly after Spirit announced it would cease operations, Duffy said: "Spirit was in dire straits long before the war with Iran.”

Trump Admin and Spirit Failed to Approve Bailout

President Donald Trump had suggested that his administration could give Spirit $500 million in exchange for roughly 90 percent control of the company, but no such deal materialized.

Duffy addressed the bailout issue, saying: “At this point, I don’t think it’s necessary. They do have access to cash. If they want to come to the U.S. government, we would be a lender of last resort.”

“If they can find dollars in the private markets, I think that's better for them if there was a need across the low-cost carriers who had made this request,” Duffy said. “Again, there's not $2.5 billion that sits around in Congress that the Executive Branch can fund a bailout for those airlines.”

“That would have to be a conversation that does happen with Congress, and there would to be a real need and so sometimes what can happen is when there's a conversation about cleared airlines and a potential bailout, if you will,” he added.

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This story was originally published May 2, 2026 at 3:12 PM.