Spirit Airlines appears closer to a shutdown as time dwindles for a government bailout
WEST PALM BEACH, Florida — Cash-strapped Spirit Airlines appeared closer to a shutdown after Friday passed without a needed government bailout.
President Donald Trump said Friday that his administration had submitted a “final proposal” to the budget airline for a taxpayer-funded buyout to prevent it from going bankrupt, but the lack of a deal has thrown the airline’s future into doubt.
A person familiar with the matter said preparations were being made for a Saturday closure. They spoke on condition of anonymity because they were not authorized to release confidential information. There was no immediate word from Spirit Airlines or the Trump administration.
Trump floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years as jet fuel prices soared because of the war in Iran. About 17,000 jobs could be affected by a shutdown, Spirit attorney Marshall Huebner said.
Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and mounting 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 low-cost carrier filed for bankruptcy protection again in August 2025, when it reported having $8.1 billion in debt and $8.6 billion in assets, according to court filings.
