Trump says a “final proposal” to rescue Spirit Airlines is under consideration

WASHINGTON (AP) — President Donald Trump said Friday that his administration is still considering a taxpayer-funded takeover of Spirit Airlines, with talks ongoing and no final decision yet on whether to move forward with a potential rescue plan.

Speaking to reporters before leaving the White House for Florida, Trump confirmed that the deal to rescue the financially distressed airline was still under review. The president did not provide details but said the announcement could be made later Friday or Saturday.

He watches: Rising fuel costs are putting budget airlines under pressure as Spirit faces bankruptcy

“We’re looking at it. If we can do it, we’ll do it. But only if it’s a good deal,” Trump said.

The possibility of a bailout first emerged publicly last week, when Trump floated the idea of ​​the US government offering Spirit a financial lifeline to help prevent the airline from going bankrupt and going out of business.

The president indicated that the government would be able to resell the airline, known for its bright yellow planes and “simple” services, for a profit once oil prices, which have been spiked by the Iran war, fall.

Read more: What could delayed jet fuel supplies mean for airlines and passengers?

Lawmakers from both parties and members of the Trump administration have criticized the idea of ​​using taxpayer money to keep the low-cost airline afloat. Speculation about the possibility of a deal grew with each passing day without a resolution as Spirit’s operating expenses and debts mounted.

The administration delivered what Trump described as the “final proposal” to the airline. He framed potential federal intervention as an effort to preserve jobs, but stressed that any fiscal arrangement reached must benefit the government.

“We’re looking at Spirit, and if we can help them, we will. But we have to come first,” Trump said.

He likened the idea to his administration’s previous move to take a stake in semiconductor manufacturer Intel, while noting that the potential dilution under discussion for Spirit was “a different kind of thing.”

Spirit is in advanced talks with the government about financing that could allow it to emerge from Chapter 11 protection, the airline’s lawyer told the US Bankruptcy Court last week.

Supporters of the bailout — including labor unions representing Spirit pilots and flight attendants — say a collapse would cost jobs, reduce competition, and likely lead to higher prices.

Critics from both parties have questioned the use of taxpayer money, warning that federal support could amount to a bailout of a company with a long history of losses.

Spirit filed for bankruptcy protection in November 2024 and again in August 2025 and has faced financial difficulties for years.

More recently, rising jet fuel costs associated with the Iran war have intensified pressure on the airline. Its creditors last month expressed doubts about whether Spirit would be able to continue operating, raising the possibility that the airline would be forced to sell its assets and shut down.

Spirit has been on shaky financial ground since the outbreak of the COVID-19 pandemic, burdened by rising operating costs and mounting debt. By the time of its first Chapter 11 filing, Spirit had lost more than $2.5 billion since the beginning of 2020.

The budget carrier sought bankruptcy protection for a second time after the parent company revealed in a quarterly report that it had “substantial doubt” about Spirit’s ability to remain in business over the next year, citing “adverse market conditions” after its first restructuring – including weak demand for domestic leisure travel and continued “uncertainties in its business operations.”

Yamat reported from Las Vegas.