Spirit Airlines planes are parked at Fort Lauderdale – Hollywood International Airport in Fort Lauderdale, Florida, United States, April 23, 2026.
Marco Bello | Reuters
President Donald Trump said Friday that his administration has presented a “final” rescue proposal for Spirit Airlines, as the budget airline could be forced to liquidate without any lifelines.
Negotiations with bondholders for a government bailout this week failed to reach an agreement on Friday. The Trump administration last month proposed a $500 million loan that could have given the government up to 90% stake in the Florida-based airline, according to people familiar with the matter who requested anonymity to discuss the discussions.
“If we could do it, we would, but only if it’s a good deal this weekend, because they haven’t come to an agreement on that,” Trump told reporters at the White House on Friday. “I said I would like to save jobs, but we will make an announcement today. (…) We have made a final proposal to them.”
Spirit declined to comment on liquidation plans. The airline’s lawyer, Marshall Huebner, said April 23 in New York bankruptcy court that Spirit’s money “won’t last very long.”
The carrier is experiencing its second bankruptcy in less than a year and now faces the added challenge of soaring jet fuel prices amid the conflict in the Middle East.
United Airlines said the carrier “is preparing to support Spirit customers and employees” if Spirit shuts down and strands crews and passengers, a spokeswoman told CNBC. Other airlines are expected to follow suit.
Spirit, a pioneer of the low-cost airline model, has struggled for years with rising costs, changing consumer tastes and engine recalls. JetBlue Airways’ planned acquisition of Spirit was successfully challenged by the Biden administration two years ago.
The airline expected to emerge from bankruptcy mid-year, before fuel prices rose.