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Spirit Airlines could stop flying as early as Friday or Saturday, after failing to secure a $500 million government bailout that the company said was vital to its survival. The low-cost airline, known for its bright yellow planes and affordable fares, has been in financial distress and is preparing to shut down unless a last-minute deal is reached, according to people familiar with the situation as reported by NBC News.
President Donald Trump confirmed on Friday that the White House had given Spirit Airlines "a final proposal" for a federal bailout but warned he was cautious about risking taxpayer money on a company that has already filed for bankruptcy twice in less than two years. "We’re looking at it. If we could do it, we’ll do it. But only if it’s a good deal," President Trump told reporters on Friday outside the White House. He said he would like to save jobs but added, "We have to come first."
The Trump administration's proposal reportedly offered up to $500 million in loans in exchange for warrants that could give the government as much as a 90 percent stake in the airline. The plan required support from both government officials and Spirit’s bondholders, but disagreements within the administration and a lack of consensus among creditors stalled the effort.
Rising jet fuel prices, driven higher by the ongoing war in Iran, have worsened Spirit’s financial troubles, draining its remaining cash and making it harder for the airline to continue operations. Spirit has filed for Chapter 11 bankruptcy protection twice, first in November 2024 and again in August 2025, and has struggled to recover from the COVID-19 pandemic, increased competition, and failed takeover attempts by JetBlue and Frontier.
Spirit Airlines serves hundreds of routes in the United States, Latin America, and the Caribbean, with major hubs in cities like Fort Lauderdale, Atlanta, Dallas/Fort Worth, and Las Vegas. More than 14,000 jobs are at stake, and industry experts warn that Spirit’s shutdown could lead to higher airfares for travelers by reducing competition among airlines.
Spirit CEO Dave Davis said last week, "We are grateful for President Trump's support and look forward to continuing to work with him and his Administration on a solution that protects thousands of jobs, preserves and enhances competition and helps ensure Americans continue to have access to affordable fares."
As of Friday afternoon, Spirit flights were still operating, but the company was preparing for the possibility of liquidating its fleet if a deal is not reached soon. President Trump said an announcement on the airline’s future could come as early as Friday or Saturday. Supporters of a bailout argue that saving Spirit would protect jobs and keep fares low, while critics question whether taxpayer money should be used to support a company with a history of financial trouble.