US President Donald Trump mentioned that his administration had provided the budget airline with a “final proposal” for a taxpayer-funded takeover to prevent bankruptcy, but the lack of an agreement left the airline’s future uncertain.
A source familiar with the situation indicated that plans were underway for a possible Saturday shutdown. They requested anonymity as they were not authorized to share confidential details. There was no immediate response from either Spirit Airlines or the Trump administration.
Trump proposed a bailout last week after the airline entered bankruptcy proceedings for the second time in less than two years, amid soaring jet fuel prices due to the Iran conflict. Roughly 17,000 jobs could be affected by a closure, according to Spirit attorney Marshall Huebner.
Since the COVID-19 pandemic, Spirit has faced financial challenges, burdened by increasing operating costs and mounting debt. After filing for Chapter 11 protection in November 2024, Spirit reported over USD 2.5 billion in losses since early 2020.
The budget airline sought bankruptcy protection once more in August 2025, claiming USD 8.1 billion in debts and USD 8.6 billion in assets, as per court documents.
