The budget airline Spirit Airlines moved dangerously close to ceasing operations as Friday’s deadline passed without securing a crucial government rescue package.
President Trump announced Friday that his administration had presented the financially struggling carrier with a “final proposal” for a taxpayer-backed takeover designed to prevent the company’s collapse, though the lack of an agreement has cast serious uncertainty over the airline’s survival.
An individual with knowledge of the situation indicated that plans were underway for operations to halt on Saturday. The source requested anonymity as they lacked authorization to share private details. Neither Spirit Airlines nor the Trump administration provided immediate statements.
The bailout concept emerged last week after the carrier entered bankruptcy proceedings for its second time in under two years, amid skyrocketing jet fuel costs due to the Iran conflict. Spirit attorney Marshall Huebner noted that approximately 17,000 positions could be affected if operations cease.
The low-cost airline has faced severe financial challenges following the COVID-19 pandemic, burdened by increasing operational expenses and mounting debt obligations. When Spirit filed for Chapter 11 bankruptcy protection in November 2024, the company had accumulated losses exceeding $2.5 billion since early 2020.
The carrier returned to bankruptcy court in August 2025, reporting liabilities of $8.1 billion against assets valued at $8.6 billion, based on legal documents.
