Until it get's to the point where there is no more lift to be had. Atmosphere thins out and that's all she wrote. Otherwise we'd have had no need for those big Saturn 5s and we'd just fly to the moon. All jet aircraft have a maximum ceiling. Let's just leave prop plans out of this for obvious reasons.
No. That's the point that you are missing. Technically you never completely leave the atmosphere, you just drop down to a point where the atmosphere is so low that for all practical purposes we treat it as 0. Even in interstellar space there is a weak 'atmospheric' pressure caused by those 20-50 atoms per cm
3. Those scattered atoms will provide lift just like they will at more normal atmospheric pressures, the only thing is that the lift they provide is incredibly minute.
Fortunately the air resistance is also incredibly minute so a ship that maintains the same amount of thrust as what it needs to ascend in the normal atmosphere will end up travelling so mindbogglingly fast that that minute amount will turn into real lift.
The formula for lift is F
L = (1/2) d v
2 s C
L with d being the density of the medium, s being the surface area of the wing and C
L being the coefficient of lift.
The formula for drag (using the same symbology and similar sequence) is F
D = (1/2) d v
2 a C
D where a is the area of the object and C
D is the coefficient of drag.
This means that as d decreases v will increase in order to keep F
D the same (since the thrust of the engine remains constant), and because of how the math works it increases at exactly the rate it has to in order to maintain F
L.
The reason jet aircraft have maximum ceilings is because they are still air-breathing engines. Take one out to the interplanetary medium and it won't even ignite. As the plane moves higher and higher above the engine's optimal altitude (I presume that most jet engines are probably not tuned to be at their most optimal at sea level) their output decreases. This means that F
D also decreases as they gain altitude and so while v might increase for a while as the plane goes higher it won't increase fast enough to maintain F
L. Long before the engine simply cuts out from lack of atmosphere the plane will reach an equilibrium where it will be unable to gain altitude. (This is in reference to a powered ascent. It is entirely possible that some jets may be able to make ballistic ascents that allow their momentum to carry them past the equilibrium point to the point where their engines cut out, but that's not what is being talked about).
Long before you reach interplanetary medium, however, you will cross the Karman line. This is the point in which the velocity of the plane must be so high to maintain lift that the plane is already travelling at orbital velocity and so no longer needs any lift to continue to ascend. It simply needs to increase velocity like any other orbital body.
The primary reason we need the big Saturn V rockets in the real world is because of what is known as specific impulse and the ideal rocket equation. Basically it says that because the amount of thrust produced in relation to the amount of mass expelled (the specific impulse) is relatively low (in relation to theoretical propulsion sources, not in relation to something like a modern car or jet) you have to carry enormous amounts of fuel in order to reach escape velocity. Ships in Traveller have either effectively infinity specific impulse or extremely high specific impulse depending on how you view it (you could arguably create a specific impulse from the amount of fuel required to run the powerplant and maneuver drive of the ship). If you could effectively put an engine with a similar specific impulse and that did not lose efficiency as it gained altitude on a jet then it could simply fly into space, even if the engine's power output was no greater than that produced by the conventional jet engine (i.e. it only has to be a fraction of a G since these don't have to be the jet engines on a fighter. They could be the jet engines on a 747).