American Airlines warns that rising fuel prices could affect its operations

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Low-cost U.S. airline Spirit Airlines announced on Saturday that it would cancel all of its flights and begin suspending operations after a potential rescue plan from the White House failed, making it the first airline to partially fail due to rising jet fuel prices amid the ongoing Iran war for two months.

Reuters reported, citing two sources described as insiders, on Friday evening that Spirit Airlines, which has declared bankruptcy, is preparing to halt operations at approximately 3:00 a.m. Saturday (7:00 GMT).

The Associated Press said the company would cease operations immediately on Saturday after 34 years of operation, and quoted the company saying, 'We are beginning an orderly wind‑down of our operations, effective immediately.'

The airline added that it had cancelled all flights and customer service was no longer available, and confirmed it would refund the amounts paid for tickets previously purchased.

The collapse of Spirit will result in the loss of thousands of jobs, making it the first airline to partially fail due to rising jet fuel prices during the ongoing Iran war for two months.

According to Reuters, this is a blow to U.S. President Donald Trump, who had proposed allocating $500 million to rescue Spirit despite opposition from some of his closest advisers and many Republicans in Congress.