The recent collapse of Spirit Airlines serves as a significant warning to China's airline industry, which is grappling with soaring fuel costs and increasing competition from high-speed rail. Despite hopes that the May Day holiday would boost air travel, a prolonged conflict between Iran and Israel has nearly doubled fuel prices, impacting airlines' already fragile profit margins. Chinese travelers increasingly favored rail during the holiday, with the nation's railway network setting records, while civil aviation passenger volume saw a year-on-year decrease. Analysts caution that many Chinese airlines, particularly ultra-low-cost carriers, operate on thin margins and may struggle to absorb sustained fuel price hikes, echoing Spirit Airlines' fate.