The news: Spirit Airlines could liquidate as soon as this week, per Bloomberg, although the situation is fluid as the bankrupt budget carrier remains in talks with creditors.

Why is this happening? The budget carrier had been working to exit bankruptcy this summer after it agreed to a deal to improve its balance sheet. That plan included shrinking its fleet, streamlining its flight schedule to ramp up flying during busy periods and reduce off-peak trips, and expanding its premium economy offerings and co-branded programs. But those plans were thrown off course by the sharp rise in jet fuel prices, which are up nearly 70% since the war began, per Airlines for America.

Implications for other carriers and the broader travel industry: Spirit is hardly alone in struggling to adjust to a rapidly shifting landscape. For example, United has considered merging with American Airlines, and even Delta—which owns a refinery that converts crude oil into jet fuel and other products such as gasoline and diesel—expects to incur more than $2 billion in additional fuel costs through June due to the war.

While the airline industry had been increasingly focused on high-margin premium offerings before the war, that push is set to intensify as input costs rise. That could make it harder for middle-income consumers to afford travel—particularly as higher gas prices make driving a less appealing alternative. Demand is weakening: A third of US consumers say they don’t plan to travel this year due to rising costs, according to a YouGov survey commissioned by The Points Guy. That pullback could ripple across the travel, hospitality, and retail industries, as fewer travelers mean less spending on hotels, dining, and tourist-area shopping.