Transportation Secretary Sean Duffy pushed back Saturday on claims that the U.S.-Iran war caused Spirit Airlines‘ (OTC:FLYYQ) collapse, calling the carrier’s financial troubles pre-existing and structural.
Spirit’s Collapse Was Self-Made
“Spirit was in dire straits long before the war with Iran,” Duffy said at a New Jersey press conference. “Multiple times, they filed for bankruptcy. Their model wasn’t working.”
Spirit announced Saturday it was “winding down its global operations, effective immediately,” marking its second bankruptcy in 12 months.
CEO Dave Davis told The Wall Street Journal that surging jet fuel costs, driven by the Iran conflict, doomed the airline’s recovery plan.
Government Not Writing Blank Checks
Several budget carriers have since requested a $2.5 billion federal bailout through …
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