President Donald Trump said Friday his administration is still weighing a taxpayer-funded takeover of Spirit Airlines, with ongoing talks and no final decision yet on whether to proceed with a potential bailout for the carrier mired in bankruptcy proceedings for the second time in less than two years.
Trump emphasized a deal to rescue the financially strapped airline remains under review. He did not provide details but said an announcement could come later Friday or Saturday.
“We’re looking at it. If we could do it, we’ll do it. But only if it’s a good deal,” he told reporters before departing the White House for Florida.
The possibility of a bailout first emerged publicly last week when Trump floated the idea of the U.S. government offering Spirit a financial lifeline to help keep the airline from going bust. Separately, a lawyer for the airline told a U.S. Bankruptcy Court that Spirit was in advanced talks with the government over financing that could allow it to exit Chapter 11 protection.
The president suggested the government would be able to resell the airline known for its bright yellow planes and “no frills” service for a profit once oil prices driven up by the Iran war come down.
Lawmakers from both parties and some members of the Trump administration have criticized the idea of using taxpayer funds to keep the ultra-low cost airline afloat.
A spokesperson for Spirit, headquartered in Dania Beach, Florida, declined to comment on ongoing discussions Friday and said “Spirit is operating as usual.”
The Trump administration has delivered what the president described as a “final proposal” to the airline. He framed the possible federal intervention as an effort to preserve jobs but stressed any financial arrangement would have to benefit the government.
“If we can help them, we will,” Trump said. “But we have to come first.”
Supporters of a rescue, including labor unions representing Spirit’s pilots and flight attendants, say a collapse would cost jobs, reduce competition and push fares higher.
The airline has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had lost more than $2.5 billion since the start of 2020.
The budget carrier sought bankruptcy protection again in August 2025, 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 “substantial doubt” about Spirit’s ability to stay in business over the next year, citing “adverse market conditions” including weak leisure domestic travel demand and ongoing “uncertainties in its business operations.”
The company, Spirit Aviation Holdings Inc., gave a more optimistic assessment earlier this year, saying in February it had reached a preliminary deal with creditors and expected to exit Chapter 11 in late spring or early summer. The reorganization would result in “a new Spirit” — a smaller, leaner carrier still focused on low fares but offering premium economy options and first-class seating with more legroom for customers willing to pay more.
Instead, the war that started days later when the U.S. and Israel launched strikes on Iran intensified the airline’s cash flow problems. With rising jet fuel costs tied to the war generating unexpected costs across the industry, 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.
If Spirit were to cease operations, budget-conscious and leisure travelers would likely feel it the most — especially where the airline has a big footprint, such as Las Vegas and Florida cities Fort Lauderdale and Orlando, according to aviation analytics firm Cirium.
The carrier flew about 1.7 million domestic passengers in February, roughly half a million fewer than during the same month a year earlier, Cirium said. Spirit has also sharply reduced its capacity. According to Cirium data, there are about half the number of seats available this month on Spirit flights than in May 2024: 1,646,878 compared to 3,399,378.