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A Spirit Airlines self bag-drop counter at Orlando International Airport (Reuters)

Discount carrier Spirit Airlines has ceased operations, becoming the first industry casualty linked to the Iran war, after failing to secure creditor support for a U.S. government bailout plan.

The airline's collapse, following a doubling in jet fuel prices, will result in thousands of job losses and is seen as a setback for President Donald Trump, who had proposed a $500 million rescue package.

Spirit's board meeting concluded without an agreement, leading the company to announce an "orderly wind-down of operations" and the cancellation of all flights, advising passengers not to go to airports.

The airline, which once accounted for 5% of U.S.…