Talks to bail out Spirit Airlines stall as company teeters toward collapse

Politics Talks to bail out Spirit Airlines stall as company teeters toward collapse By Kris Van Cleave, Kris Van Cleave Kris Van Cleave Emmy Award-winning journalist Kris Van Cleave is the senior transportation correspondent for CBS News based in Phoenix, Arizona, where he also serves as a national correspondent reporting for all CBS News broadcasts and platforms. Read Full Bio Kris Van Cleave, Jennifer Jacobs Jennifer Jacobs Senior White House reporter Jennifer Jacobs is a senior White House reporter at CBS News. Read Full Bio Jennifer Jacobs Updated on: April 29, 2026 / 5:00 PM EDT / CBS News Add CBS News on Google Spirit Airlines only has enough available cash to continue operations for a matter of days, not weeks, and talks for a government-backed rescue of the no-frills carrier have stalled, according to multiple sources familiar with the discussions.Facing two bankruptcies since 2024 and rising fuel prices due to the Iran war, Spirit has sought a lifeline from the federal government. The Trump administration has offered to come to the airline's aid, weighing a deal in which the government would lend Spirit $500 million in exchange for the right to take control of 90% of the company, CBS News has previously reported.But the deal — which would make the government the senior bondholder, meaning it would get paid back before others — won't happen unless Spirit's creditors sign off.Some of Spirit bondholders continue to balk at a government deal, sources said.Ken Griffin's Citadel submitted a counterproposal, but it was rejected by the government. Two other creditors — Ares Management Corp. and Cyrus Capital — are also opposed to the government plan, two U.S. officials told CBS News. A bankruptcy hearing planned for Thursday was postponed, according to a Wednesday court filing that noted conversations on the government bailout package are continuing. Last week, it was revealed in a bankruptcy court hearing that Spirit skipped...