WASHINGTON (AP) 鈥� President Donald Trump said Friday that his administration delivered a 鈥渇inal proposal鈥� to Spirit Airlines while continuing to weigh that might keep the budget carrier from going under during mired in bankruptcy proceedings for the second time in less than two years.
The president did not provide details but said an announcement could come later Friday or Saturday.
鈥淲e鈥檙e looking at it. If we could do it, we鈥檒l do it. But only if it鈥檚 a good deal,鈥� he said earlier Friday, speaking to reporters before departing the White House for Florida.
The possibility of a bailout first emerged publicly last week, when Trump of the U.S. government offering Spirit a financial lifeline to help keep it from going out of business. 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.
The president suggested the government would be able to resell the airline known for its bright yellow planes and 鈥渘o frills鈥� service for a profit once driven up by the come down.
Lawmakers from both parties and some Trump administration officials have criticized using taxpayer funds to keep the ultra-low cost airline afloat. Speculation around Spirit’s future has grown with every day that passes without a resolution and its operating expenses and debts mount.
A spokesperson for Spirit, headquartered in Dania Beach, Florida, declined to comment on ongoing discussions Friday and said 鈥淪pirit is operating as usual.鈥�
Although travelers still could book flights on the airline’s website Friday evening, customers flooded Spirit’s X account with questions about upcoming flights and demands for refunds. Some U.S. airlines say they would step in to support Spirit customers if the airline goes under.
American Airlines said in a statement that it was capping main cabin fares for flights on Spirit routes鈥剋here American also鈥刼ffers nonstop service. Budget carrier Frontier said in an X post that it was 鈥渞eady to support customers who may be impacted if Spirit Airlines ceases operations.”
Trump framed the possible federal intervention as an effort to preserve jobs but stressed that any deal must benefit the government.
鈥淚f we can help them, we will,” he said. 鈥淏ut we have to come first.鈥�
The size and terms of the deal have not been shared publicly. The Wall Street Journal and Bloomberg, citing unnamed sources, both reported an amount of $500 million that would give the government an option to acquire a sizable stake in the airline.
Supporters of a rescue 鈥� including labor unions representing Spirit’s pilots, flight attendants and ramp workers 鈥� say a collapse would put thousands of Americans out of work and hurt consumers by reducing airline competition and increasing airfares. 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, 鈥渋t’s in his hands.鈥�
鈥淓veryday Americans will hurt,鈥� Nelson wrote, including consumers and 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 鈥渁ll the time” and compared the carrier to 鈥渢hat reliable car that you have. It always gets you from point A to point B safely.鈥�
Euzebe, who was at Fort Lauderdale鈥揌ollywood 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 鈥減ut food on the table, keep the lights on for their homes,鈥� he said. “So if that means that bailing them out keeps these people working, I support 100%.鈥�
Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it in November 2024, Spirit had lost more than $2.5 billion since the start of 2020.
The budget carrier sought bankruptcy protection again , 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 about Spirit鈥檚 ability to stay in business over the next year, citing 鈥渁dverse market conditions鈥� 鈥� including weak leisure domestic travel demand and ongoing 鈥渦ncertainties in its business operations.鈥�
The company, Spirit Aviation Holdings Inc., struck a more optimistic tone earlier this year, saying in February it had reached a preliminary deal with creditors and in late spring or early summer. It pitched a 鈥渘ew Spirit,鈥� 鈥� smaller and leaner, but still focused on low fares while adding more premium seating options.
Instead, the war that started days later when the U.S. and Israel launched strikes on Iran intensified the airline’s cash flow problems. Rising tied to the war added pressure across the industry, and 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.
Gianfranco Finizio, a bankruptcy expert and partner at law firm Lowenstein Sandler, said Spirit鈥檚 situation reflected an unusually turbulent stretch for the airline, shaped in part by shifting signals from Washington.
He cited the Biden administration鈥檚 successful 2023 lawsuit with JetBlue, followed by mixed messages from the Trump administration about a potential rescue.
鈥淭he thought of there even being a bailout is unusual. It鈥檚 not something that happens in every day bankruptcy practice,鈥� said Finizio, who is not involved in the airline’s Chapter 11 proceedings.
“It’s been a tumultuous couple of years and certainly a tumultuous couple of weeks for Spirit,鈥� he said.
Budget-conscious and leisure travelers would likely feel Spirit’s absence the most 鈥� especially where the airline has a big footprint, such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando.
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, according to aviation analytics firm Cirium. It has also sharply , with about half as many seats available this month than in May 2024.
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Yamat reported from Las Vegas. Associated Press video journalist Daniel Kozin contributed from Fort Lauderdale, Florida.
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