President Donald Trump said Friday that his administration delivered a “final proposal” to Spirit Airlines while continuing to consider a taxpayer-funded takeover aimed at preventing the budget carrier from failing during its Chapter 11 bankruptcy case for the second time in less than two years. Trump did not share the terms of any possible deal, but he said an announcement could come later Friday or Saturday.
Trump spoke to reporters after departing the White House for Florida, and he said the administration was “looking at it” and would proceed only “if it’s a good deal.” He also framed potential federal involvement as a way to preserve jobs while maintaining that the government would have to benefit from any arrangement, suggesting the administration could later resell Spirit, which is known for its bright yellow aircraft and “no frills” service, once oil prices tied to the Iran conflict fall.
The possibility of a bailout emerged publicly last week, when Trump floated the idea of a U.S. government financial lifeline for Spirit. Separately, a lawyer for the airline told a U.S. Bankruptcy Court that Spirit was in advanced talks with the government about a financing package. During Friday’s remarks, Trump did not provide additional specifics on what he called a “final proposal,” but he reiterated that the administration was weighing whether it could do something that is “a good deal.”
Spirit, headquartered in Dania Beach, Florida, did not provide details on the discussions. A spokesperson declined to comment on ongoing talks Friday and said, “Spirit is operating as usual.” Even so, customers who could still book flights on the airline’s website flooded Spirit’s X account with questions about upcoming trips and demands for refunds as speculation continued.
Lawmakers from both parties and some Trump administration officials have criticized the idea of using taxpayer funds to keep the ultra-low cost carrier afloat as uncertainty has stretched out and Spirit’s operating costs and debts continued to rise. The AP report said the unresolved situation has grown day-by-day without a clear resolution in the bankruptcy process.
A key element of the political debate has been the potential employment impact if Spirit fails. Spirit’s bankruptcy lawyer Marshall Huebner told the report that about 17,000 jobs could be affected, and labor unions representing Spirit’s pilots, flight attendants and ramp workers have argued a rescue is necessary to avoid broader fallout for workers and consumers. Sara Nelson, president of the Association of Flight Attendants, wrote on X that “it’s in his hands” if Trump wants to help the airline. She added that “Everyday Americans will hurt,” including consumers and employees who would lose jobs if Spirit shuts down.
The report also included accounts from travelers who have been affected by cancellations amid the uncertainty. Miami resident Caleb Euzebe, 27, said he flies Spirit “all the time” and compared the carrier to “that reliable car that you have.” He was at Fort Lauderdale–Hollywood International Airport after his Spirit flight to Houston was canceled Friday and said he supported federal intervention if it meant saving jobs, adding, “So if that means that bailing them out keeps these people working, I support 100%.”
As the federal deliberations continued, other airlines publicly signaled how they would respond if Spirit’s operations ended. American Airlines said it was capping main cabin fares for routes where American also offered nonstop service. Frontier posted on X that it was “ready to support customers who may be impacted if Spirit Airlines ceases operations.”
The AP also described Spirit’s financial trajectory leading into the current moment. The airline has struggled since the COVID-19 pandemic, and by the time it filed for Chapter 11 protection in November 2024, it had lost more than $2.5 billion since the start of 2020. The company later sought bankruptcy protection again in August 2025, reporting $8.1 billion in debts and $8.6 billion in assets in court filings.
In addition to the bankruptcy filings, the report said Spirit’s financial position was shaped by broader market conditions, including weak leisure demand and uncertainties in operations. Spirit’s parent, Spirit Aviation Holdings Inc., reported “substantial doubt” that it could stay in business over the next year, while also later describing a preliminary creditor deal and expecting to exit Chapter 11 in late spring or early summer. That outlook shifted after fighting related to the Iran war intensified, pushing up jet fuel costs and increasing pressure across the industry, while Spirit’s creditors raised doubts about whether it could continue operating and whether it might have to sell assets or shut down.
A bankruptcy expert cited in the report said the case reflected an unusually turbulent stretch for Spirit and pointed to changing signals from Washington, including the Biden administration’s 2023 effort to block Spirit’s merger with JetBlue and “mixed messages” from the Trump administration about potential rescue. Gianfranco Finizio, a partner at Lowenstein Sandler who is not involved in Spirit’s proceedings, said, “The thought of there even being a bailout is unusual,” adding, “It’s been a tumultuous couple of years and certainly a tumultuous couple of weeks for Spirit.”