Trump says a Spirit bailout still is possible as doubts about the airline’s survival mount

The tail of a Spirit Airlines Airbus A320 is shown as the plane prepares to take off from Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Fla. (AP Photo/Wilfredo Lee, File)

WASHINGTON — WASHINGTON - U.S. President Donald Trump said Friday that his administration was still weighing a taxpayer-funded takeover of Spirit Airlines, with talks ongoing and no final decision yet on whether to move forward with a potential bailout for a carrier mired in bankruptcy proceedings for the second time in less than two years.

Trump emphasized that a deal to rescue the financially strapped airline remained under review. The president did not provide details but said an announcement could come later Friday or Saturday.

“We’re looking at it. If we could do it, we’ll do it. But only if it’s a good deal,” he said, speaking to reporters before departing the White House for Florida.

The possibility of a bailout first emerged publicly last week, when Trump floated the idea of the U.S. government offering Spirit a financial lifeline to help keep the airline from going bust and out of business. Separately, a lawyer for the airline told a U.S. Bankruptcy Court that Spirit was in advanced talks with the government over financing that could allow it to exit Chapter 11 protection.

The president suggested the government would be able to resell the airline known for its bright yellow planes and “no frills” service for a profit once oil prices driven up by the Iran war come down.

Lawmakers from both parties and some members of the Trump administration have criticized the idea of using taxpayer funds to keep the ultra-low cost airline afloat. Speculation around Spirit’s future and the likelihood of a deal emerging has mounted with every day that passes without a resolution as the airline’s operating expenses and debts mount.

A spokesperson for Spirit, which has its headquarters in Dania Beach, Florida, declined to comment on ongoing discussions Friday and said “Spirit is operating as usual.”

Although travellers still could book flights on the airline’s website Friday afternoon, people who said they had existing reservations or credits flooded Spirit’s X feed with questions about upcoming flights and demands for refunds. Some U.S. airlines, meanwhile, said they would step in to support Spirit customers if the airline goes under.

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American Airlines said in a statement that it was capping main cabin fares for flights on Spirit routes where American also offers nonstop service. Budget carrier Frontier said in an X post that was “ready to support customers who may be impacted if Spirit Airlines ceases operations.”

Earlier in the day, Trump said his administration delivered what he described as a “final proposal” to the airline. He framed the possible federal intervention as an effort to preserve jobs but stressed that any financial arrangement worked out would have to benefit the government.

“If we can help them, we will,” Trump said. “But we have to come first.”

Supporters of a rescue -- including labor unions representing Spirit’s pilots and flight attendants -- say that a collapse would cost jobs, reduce competition and push fares higher. About 17,000 jobs could be impacted, according to Spirit lawyer Marshall Huebner.

Sara Nelson, president of the Association of Flight Attendants, said Friday in a post on X that if Trump wanted to help the airline, “it’s in his hands.”

“Everyday Americans will hurt,” Nelson wrote, saying that consumers would ill be impacted in addition to the employees who stand to lose their jobs if Spirit shuts down.

Miami resident Caleb Euzebe, 27, who works at an insurance company, said he flies Spirit “all the time” and compared the low-cost carrier to “that reliable car that you have. It always gets you from point A to point B safely.”

Euzebe, who was at Fort Lauderdale--Hollywood International Airport after his Spirit flight to Houston was canceled Friday, said he supported the government stepping in if it meant saving jobs.

Spirit’s employees have to “put food on the table, keep the lights on for their homes,” he said. “So if that means that bailing them out keeps these people working, I support 100 per cent.”

Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had lost more than US$2.5 billion since the start of 2020.

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The budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion in debts and $8.6 billion in assets, according to court filings.

Shortly before, its parent company revealed in a quarterly report that it had “substantial doubt” about Spirit’s ability to stay in business over the next year, citing “adverse market conditions” -- including weak leisure domestic travel demand and ongoing “uncertainties in its business operations.”

The company, Spirit Aviation Holdings Inc., gave a more optimistic assessment earlier this year, saying in February that it had reached a preliminary deal with creditors and expected to exit Chapter 11 in late spring or early summer. The reorganization would result in “a new Spirit” -- a smaller, leaner carrier still focused on low fares but offering premium economy options and a version of first-class seating with more legroom for customers willing to pay more.

Instead, the war that started days later when the U.S. and Israel launched strikes on Iran intensified the airline’s cash flow problems. With rising jet fuel costs tied to the war generating unexpected costs across the industry, Spirit’s creditors last month expressed doubts about whether it could continue operating, raising the possibility of the airline being forced to sell off assets and shut down.

If Spirit were to cease operations, budget-conscious and leisure travellers would likely feel it the most -- especially where the airline has a big footprint, such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando, according to aviation analytics firm Cirium.

The carrier flew about 1.7 million domestic passengers in February, roughly half a million fewer than it did during the same month a year earlier, Cirium said. Spirit has also sharply reduced its capacity. According to Cirium data, there are about half the number of seats available this month on Spirit flights than in May 2024: 1,646,878 compared to 3,399,378.

By Michelle L. Price And Rio Yamat.

Yamat reported from Las Vegas. Associated Press video journalist Daniel Kozin contributed from Fort Lauderdale, Florida.