Spirit Airlines appears closer to a shutdown as time dwindles for a government bailout
WEST PALM BEACH, Fla. (AP) — Cash-strapped Spirit Airlines appeared closer to a shutdown after Friday came and went without a needed government bailout.
President Donald Trump said Friday that his administration had given the budget carrier a “final proposal” for a taxpayer-funded takeover to keep it from going under, but the absence of a deal put the airline's future in doubt.
A person familiar with the matter said preparations were being made for a Saturday shutdown. They spoke on condition of anonymity because they were not authorized to disclose confidential information. There was no immediate word from Spirit Airlines or the Trump administration.
The airline continued to assure travelers on X late Friday that flights were “operating as scheduled.” But it canceled 52 flights on Friday, compared to only three the previous day.
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 with jet fuel prices soaring because of the Iran war. About 17,000 jobs could be impacted by a shutdown, Spirit lawyer Marshall Huebner said.
Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing 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 budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion in debts and $8.6 billion in assets, according to court filings.
Supporters of a rescue including labor unions representing Spirit’s pilots, flight attendants and ramp workers say a collapse would put thousands of Americans out of work and hurt consumers by reducing airline competition and increasing airfares. About 17,000 jobs could be impacted, according to Spirit lawyer Marshall Huebner.
Budget-conscious and leisure travelers would likely feel Spirit’s absence the most, especially in places where the airline has a big footprint such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando.
The carrier flew about 1.7 million domestic passengers in February, roughly half a million fewer than during the same month a year earlier, according to aviation analytics firm Cirium. Spirit also has sharply reduced its capacity, with about half as many seats available this month than in May 2024.
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