Elevated jet fuel prices, driven by Middle East supply disruptions since early 2026, represent the dominant catalyst pressuring U.S. airline balance sheets and shaping trader views on near-term bankruptcy filings. Carriers with elevated leverage, limited hedging, and thin operating margins face acute cash-burn risk, as evidenced by the industry’s nearly $1 billion aggregate net loss in Q1 2026 and IATA’s downward revision of full-year profit forecasts to $23 billion. Spirit Airlines’ May 2026 liquidation following its second Chapter 11 filing within a year illustrates how fuel spikes above $4 per gallon can collapse restructuring plans. JetBlue has drawn particular attention after founder comments highlighted potential billion-dollar losses at sustained high fuel levels. Key upcoming catalysts include second- and third-quarter earnings releases and any further volatility in crude benchmarks that could widen credit spreads or trigger covenant breaches.