Will the Iran war claim an airline?

In the last few weeks, as fuel prices have surged, Italian low-fare carrier GoTo Fly and Royal Air Philippines have folded. Before that, it was Air Albania and Slovenian low-cost airline AlpAvia. Spirit Airlines, which filed for its second bankruptcy in less than a year, is teetering on the brink. Even established names like Qatar Airways, Gulf Air, flydubai, and Air Arabia are reportedly cutting back flights.

Maybe the real question is, will the war claim your airline?

The reality is that the little guys—the startups and regional carriers—are the ones most likely to vanish suddenly. Even Washington is reading the tea leaves. Transportation Secretary Sean Duffy last week hinted that the government was open to approving more airline mergers. 

We’re likely to see more marriages of convenience as airlines realize they can't survive the turbulence of an uncertain operating environment. Some airlines are reportedly paying between $70,000 and $150,000 per flight in war risk insurance when they operate in the Gulf region, which is practically unsustainable for some smaller airlines.

Could the government bail out a troubled carrier? Probably not in the United States. Unlike the pandemic era, governments have mostly closed the checkbook. In other words, if you’re flying a small airline to save fifty bucks, you’re taking a gamble on its balance sheet and a volatile geopolitical situation.

If your airline pulls a disappearing act, don't look to the federal government to fly you home.

PRO TIP: Pay with a credit card. The Fair Credit Billing Act lets you dispute the charge if the service isn't provided. And bookmark our consumer advocacy site. We’re always here to help you.

My prediction: There will probably be at least one, and maybe two, big mergers before the end of this year. JetBlue is already reportedly in play. Redeem those miles soon, people!

The takeaway: Stop booking the absolute cheapest startup airline for your summer vacation. If the airline doesn't have a massive fleet and a deep war chest, your deal might turn into an expensive lesson in bankruptcy law.

We had a spirited discussion this morning about the skyrocketing cost of checking a bag. It’s clear that the era of "bags fly free" is officially a relic of the past.

But the data tells a grim story for your wallet. Airlines have completely decoupled bag fees from their actual costs, and we’re now living in a world of surge pricing for luggage. You don't have to be a victim of these "innovations." The FAIR Fees Act offers a glimmer of hope by demanding fees be reasonable and proportional—and maybe, just maybe, Congress will find its spine in time for the next election. We can only hope. 

Walking has always been one of the best ways to see the sights, but a new analysis shows that in some parts of the country, it’s also risky.

Over a five-year period, 38,190 pedestrians were killed on U.S. roads, according to new Department of Transportation numbers. That’s an average of more than 7,600 people a year who didn't make it across the street.

New Mexico is the most dangerous place to be a pedestrian, with a fatality rate of 4.55 per 100,000 residents. That's more than double the national average.

Eight of the ten deadliest states are in the South or the Sun Belt. We’re talking about places where road design often prioritizes high-speed traffic over the person trying to cross the street.

"These numbers represent real people crossing actual streets," says Tyler Wilk, an attorney with Wilk Law. He points out that a fatality rate five times higher in some states than others isn't just bad luck, but a result of policy decisions. Poor road design, lack of enforcement, and a lack of pedestrian protections are killing us.

PRO TIP: If you're traveling to Hawaii, be especially careful. The state saw a massive 56 percent spike in pedestrian deaths between 2020 and 2024. Meanwhile, if you want to feel safe while walking, head to Minnesota or Iowa, which tied for the lowest fatality rates at just 0.89 per 100,000.

When you're in a high-risk area, don't assume a driver sees you just because you’re in a crosswalk. Wear bright colors, stay off your phone while walking, and always cross at intersections. 

The takeaway: When traveling through the Sun Belt or the South, treat every street crossing like a high-hazard zone—never assume a vehicle will stop, even if the light is in your favor.

Had any near-misses recently as a pedestrian? (I'm in Australia, and I could tell you some stories, believe me.) Also, are you concerned about your airline going under during the Iran war? Share your thoughts; we're here to help.