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President Donald Trump said Friday that his administration was still weighing\u00a0a taxpayer-funded takeover\u00a0of Spirit Airlines, with talks ongoing and no final decision yet on whether to move forward with a potential bailout for a carrier mired in bankruptcy proceedings for the second time in less than two years.<\/p>\n
Trump emphasized that a deal to rescue the financially strapped airline remained under review. The president did not provide details but said an announcement could come later Friday or Saturday.<\/p>\n
\u201cWe\u2019re looking at it. If we could do it, we\u2019ll do it. But only if it\u2019s a good deal,\u201d he said, speaking to reporters before departing the White House for Florida.<\/p>\n
The possibility of a bailout first emerged publicly last week, when Trump\u00a0floated the idea\u00a0of the U.S. government offering Spirit a financial lifeline to help keep the airline from going bust and out of business. 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.<\/p>\n
The president suggested the government would be able to resell the airline known for its bright yellow planes and \u201cno frills\u201d service for a profit once\u00a0oil prices\u00a0driven up by the\u00a0Iran war\u00a0come down.<\/p>\n
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. Speculation around Spirit\u2019s future and the likelihood of a deal emerging has mounted with every day that passes without a resolution as the airline\u2019s operating expenses and debts mount.<\/p>\n
A spokesperson for Spirit, which has its headquarters in Dania Beach, Florida, declined to comment on ongoing discussions Friday and said \u201cSpirit is operating as usual.\u201d<\/p>\n
The Trump administration has delivered what the president described as a \u201cfinal proposal\u201d to the airline. He framed the possible federal intervention as an effort to preserve jobs but stressed that any financial arrangement worked out would have to benefit the government.<\/p>\n
\u201cIf we can help them, we will,\u201d Trump said. \u201cBut we have to come first.\u201d<\/p>\n
Supporters of a rescue \u2014 including labor unions representing Spirit\u2019s pilots and flight attendants \u2014 say that a collapse would cost jobs, reduce competition and push fares higher.<\/p>\n
The airline has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it\u00a0filed for Chapter 11 protection\u00a0in November 2024, Spirit had lost more than $2.5 billion since the start of 2020.<\/p>\n
The budget carrier sought bankruptcy protection again\u00a0in August 2025, when it reported having $8.1 billion in debts and $8.6 billion in assets, according to court filings.<\/p>\n
Shortly before, its parent company revealed in a quarterly report that it had\u00a0\u201csubstantial doubt\u201d\u00a0about Spirit\u2019s ability to stay in business over the next year, citing \u201cadverse market conditions\u201d \u2014 including weak leisure domestic travel demand and ongoing \u201cuncertainties in its business operations.\u201d<\/p>\n
The company, Spirit Aviation Holdings Inc., gave a more optimistic assessment earlier this year, saying in February that it had reached a preliminary deal with creditors and\u00a0expected to exit Chapter 11\u00a0in late spring or early summer. The reorganization would result in \u201ca new Spirit\u201d \u2014 a smaller, leaner carrier still focused on low fares but offering premium economy options and a version of first-class seating with more legroom for customers willing to pay more.<\/p>\n
Instead, the war that started days later when the U.S. and Israel launched strikes on Iran intensified the airline\u2019s cash flow problems. With rising\u00a0jet fuel costs\u00a0tied to the war generating unexpected costs across the industry, Spirit\u2019s 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.<\/p>\n
If Spirit were to cease operations, budget-conscious and leisure travelers would likely feel it the most \u2014 especially where the airline has a big footprint, such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando, according to aviation analytics firm Cirium.<\/p>\n
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, Cirium said. Spirit has also sharply\u00a0reduced 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.<\/p>\n
#Trump #final #proposal #taxpayerfunded #takeover #Spirit #Airlines #review<\/p>\n","protected":false},"excerpt":{"rendered":"
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