Spirit airlines teeters on collapse as Trump weighs last-minute bailout

International

By Patricia Andrea Pateña-Matheu

THERE is little “spirit” left in Spirit Airlines’ financial outlook as Washington weighs whether to step in and prevent a potential shutdown.

A decision from the Trump administration is expected within hours or days, according to officials.

President Donald Trump said Friday that the White House could announce whether it will intervene in the airline’s financial crisis “today or tomorrow,” as negotiations continue over a possible rescue package.

Speaking at the White House, Trump said the administration was still assessing whether a viable agreement could be reached. He pointed to the difficulty of structuring a deal that would satisfy all parties involved.

“Well, we’re looking at it — but if we can’t make a good deal, no institution’s been able to do it,” Trump said on Friday, as quoted by CNN.

He also said the administration wants to protect jobs but emphasized that a final proposal had already been presented to Spirit.

Despite the uncertainty, Spirit Airlines said it is still operating normally. A company spokesperson told CNN the airline remains in regular service and there have been no immediate disruptions.

The carrier’s financial situation has deteriorated in recent months.

Spirit, which has struggled since the collapse in air travel demand during the Covid-19 pandemic, is now in its second bankruptcy process, filed in August 2025. Earlier this year, it reached a restructuring agreement with creditors aimed at reducing debt and stabilizing operations.

That plan was thrown into doubt after jet fuel prices rose sharply following the outbreak of war in Iran, increasing costs across the airline industry. The spike has complicated negotiations between Spirit, its creditors, and the federal government over a proposed $500 million bailout that has yet to gain full agreement.

A Spirit attorney previously told a bankruptcy court the airline was in “very advanced discussions” with the administration. However, some creditors have reportedly pushed back on the proposed terms, arguing they would be treated less favorably under the deal.

If Spirit shuts down, the impact would be immediate. The airline has about 9,000 flights scheduled from May 2 through the end of the month, according to Cirium, averaging roughly 300 flights a day and affecting about 60,000 passengers daily.

Other airlines have said they may help accommodate stranded travelers if needed. Still, analysts expect fares to rise across the industry if Spirit’s capacity is removed, as demand shifts to fewer available seats.

Spirit is the eighth-largest U.S. airline by seats offered and helped popularize the ultra-low-cost model by charging low base fares and adding fees for extras like carry-on bags. The approach pushed competitors to adopt similar pricing structures.

The airline has remained unprofitable since the pandemic-era travel collapse and has filed for bankruptcy twice, most recently in 2025. Over the past 25 years, eight major U.S. airlines have gone through bankruptcy, often leading to consolidation in the industry. Today, four carriers control about 80% of domestic flight capacity.

If Spirit ceases operations, it would be the first major U.S. airline collapse since Midway Airlines after the September 11 attacks.(MyTVCebu)