Sen. Elizabeth Warren (D-Mass) criticized President Donald Trump on Saturday for prolonging the conflict in Iran, which has led to a surge in oil prices and, in turn, resulted in budget airline Spirit Aviation Holdings Inc. (OTC:FLYYQ) ceasing operations.
Iran War Final ‘Nail In The Coffin,’ Elizabeth Warren Says
In a post on X, Warren slammed the administration’s participation in the war. “Spiking fuel prices from Trump’s war was the nail in the coffin for twice-bankrupted Spirit airline,” she said. Warren added that the proposed merger with JetBlue Airways Corp (NASDAQ:JBLU) fell through because a judge appointed by former President Ronald Reagan deemed the merger “illegal.”
“Republicans are desperate to shift blame from higher costs hitting families,” she said in the post, amid criticism from GOP lawmakers about the failed merger during the previous President Joe Biden administration.
Spirit Airlines Ceases Operations
The news comes as the budget airline stopped flying on Saturday after its creditors said they would not back a U.S. government rescue plan for the airline amid escalating tensions with Iran. Meanwhile, other budget airlines like Frontier Group Holdings Inc. (NASDAQ:ULCC) and Avelo also reportedly sought $2.5 billion in a relief package amid rising fuel costs.
According to data from Airlines for America on Friday, the price of a gallon of jet fuel hovered around the $4.13 mark, which is down from early April’s $4.88/gallon price.
Iran War Updates
Meanwhile, Trump launched the “Project Freedom” initiative aimed at guiding stranded ships through the Strait of Hormuz as a “humanitarian gesture” for non-partisan countries amid the joint war between the U.S. and Israel against Iran.
Trump had earlier also shared that his administration was reviewing a new proposal from Iran to end the war in the Middle East, but expressed doubt whether it would meet his expectations.
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