Transportation

Spirit Airlines preparing to shut down if bailout deal isn’t reached: Reports

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by Marc Sternfield - 05/01/26 8:24 PM ET

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by Marc Sternfield - 05/01/26 8:24 PM ET

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(KTLA) – Spirit Airlines may be reaching the end of the runway.

After months of negotiations, the discount carrier is preparing to cease operations unless they can reach a critical government bailout deal, according to The Wall Street Journal and CBS News.

CBS reports the airline could start shutting down as soon as Saturday.

President Donald Trump had previously said he was weighing a taxpayer takeover of Spirit Airlines, with plans to resell the troubled carrier after oil prices decline.

On Friday, Trump said his administration is still weighing a taxpayer-funded takeover of Spirit Airlines, with talks ongoing and no final decision yet on whether to move forward with a potential bailout.

“We’re looking at it. If we could do it, we’ll do it. But only if it’s a good deal,” Trump told reporters on Friday.

He didn’t offer any details about what proposal he was considering but said he’d like to save jobs at the airline, which has filed for bankruptcy twice in two years. Trump said his administration gave Spirit “a final proposal” and would make an announcement Friday or Saturday.

Spirit has been struggling to stay aloft amid mounting debt, rising costs and failed merger attempts. The airline filed for Chapter 11 bankruptcy protection in November 2024 and again in August 2025.

With the war involving Iran driving up jet fuel costs across the industry, creditors earlier this month raised fresh doubts about the airline’s long‑term viability.

The Associated Press contributed to this report.

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