Surging jet fuel prices, driven by Middle East supply disruptions including the Iran conflict, represent the dominant factor pressuring airline balance sheets and elevating bankruptcy risk through year-end. Spirit Airlines, after two prior Chapter 11 filings, ceased operations on May 2, 2026, as fuel costs roughly doubled and restructuring negotiations collapsed despite attempts at creditor deals and potential government support. Smaller carriers such as Magnicharters have followed with filings in May, while major U.S. operators including Delta and American Airlines report compressed margins in recent quarterly releases amid elevated fuel expenses exceeding $4 per gallon. Analyst forecasts for 2026 industry revenue have been sharply revised lower, with low-cost models most exposed to sustained volatility. Key catalysts ahead include upcoming earnings releases, FOMC policy signals on inflation, and any further capacity or labor adjustments that could alter cash-flow trajectories for at-risk carriers.