Spirit Airlines is preparing to shutter operations after a $500 million bailout deal with the Trump administration fell apart, according to a report Friday.
The embattled budget airline has so far been unable to secure enough funding from the government and certain bondholders to keep it in business, the Wall Street Journal reported Friday, citing sources familiar with the matter.
“If we could do it, we’d do it, but only if it’s a good deal,” President Trump told reporters Friday at the White House, saying an announcement could come later Friday or the following day.
“I’d like to save the jobs,” he added. “If we can help them, we will. But we have to come first. We’re first.”
Spirit has been in talks with the Trump administration about a deal that would hand the government a stake of up to 90% in exchange for a major cash boost – potentially allowing the White House to use part of the bankrupt carrier’s fleet for military missions, according to CBS News.
But the deal was reportedly facing an uphill battle, as some members of the Trump administration fought over how to fund the bailout – and whether they should back it all – and some Spirit bondholders opposed the help altogether.
A spokesperson for Spirit declined to comment on “ongoing discussions.”
The White House did not immediately respond to The Post’s request for comment.
Trump previously said he would like someone to acquire the struggling airline, saying it was possible the government could get involved – signaling his latest interest in getting the White House involved in the private sector.
But United Airlines and American Airlines quickly swooped in Friday to say that they were preparing to support Spirit customers if the rival carrier shuts down.
United Airlines CEO Scott Kirby has shared doubts about whether a government bailout for Spirit would be enough to save the flailing budget airline.
Kirby called Spirit “an interesting experiment” that has “failed,” adding that its business model is fundamentally flawed and will not be able to cover cash operating costs.
Spirit snapped back in a post on X, saying customers love the company’s affordable fares and product offerings – and “Maybe that’s why United executives can’t stop yapping about us.”
Earlier this week, National Economic Council Director Kevin Hassett downplayed concerns about how long Spirit could last without a rescue plan, saying creditors could contribute more cash if they wanted to extend talks.
In the meantime, Spirit – like many other global airlines – has been struggling to contend with surging jet fuel prices as the Iran war causes the worst-ever energy supply disruption in history.
As of April 30, the average jet fuel price in Chicago, Houston, Los Angeles and New York was $4.51 a gallon, according to the Argus US Jet Fuel Index. That’s an 80% premium over the $2.50 price tag in February prior to US-Israeli strikes on Iran.
Many airlines have responded by cutting down on long-haul routes, especially as they are forced to re-route some flights around war zones – meaning more fuel needs to be expended.
Spirit has said it plans to shrink its fleet to about one-third of its pre-bankruptcy size, or about 76 to 80 aircraft by the third quarter of 2026.
The Florida-based airline – which filed for bankruptcy last summer for the second time in less than a year – built its turnaround plan based on fuel costs averaging $2.24 a gallon in 2026 and $2.14 in 2027, according to its March disclosures.
Spirit is best known for its neon yellow Airbus planes and ultra-low ticket fares – as well as its sky-high prices for checked bags and priority seating assignments.
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