Trump considers Spirit Airlines bailout as bankruptcy-hit carrier faces refund demands

President Donald Trump has hinted at a potential bailout for a major US airline teetering on the brink of bankruptcy - as disgruntled passengers flood social media with demands for refunds. Trump revealed on Friday that his administration was still weighing up a taxpayer-funded takeover of Spirit Airlines , with talks ongoing and no firm decision yet made. The government could push ahead with a potential rescue package for the carrier , which has found itself embroiled in bankruptcy proceedings for the second time in less than two years - however the President appears to be playing his cards close to his chest. He confirmed that a rescue deal for the financially struggling airline remained on the table, stopping short of going into further detail but hinting that an announcement could come later on Friday or Saturday. "We're looking at it. If we could do it, we'll do it. But only if it's a good deal," he said, speaking to reporters before departing the White House for Florida. The possibility of a bailout first emerged publicly last week, when Trump floated the idea of the US government throwing Spirit a financial lifeline to stop the airline from going under altogether. Separately, a lawyer representing the airline told a US Bankruptcy Court that Spirit was in advanced talks with the government over funding that could allow it to exit Chapter 11 protection. The president suggested the government would be in a position to resell the airline at a profit once oil prices, driven up by the Iran war, begin to fall. Politicians from across the political divide, as well as certain members of the Trump administration, have voiced opposition to the idea of using taxpayer money to bail out the ultra-low cost carrier. Speculation surrounding Spirit's future and the prospect of a deal being struck has intensified with each passing day as the airline's operating costs and debts continue to mount. A spokesperson for Spirit, which is headquartered in Dania Beach, Florida, declined to comment on ongoing negotiations on Friday, stating that "Spirit is operating as usual." Despite flights remaining bookable via the airline's website on Friday afternoon, passengers with existing reservations or credits flooded Spirit's X feed with queries about upcoming flights and demands for refunds. Several airlines, meanwhile, indicated they were prepared to step in and assist Spirit customers should the carrier go under. American Airlines announced it was capping main cabin fares on routes where it operates nonstop services alongside Spirit. Budget rival Frontier posted on X that it was "ready to support customers who may be impacted if Spirit Airlines ceases operations." Earlier in the day, Trump revealed that his administration had put forward what he described as a "final proposal" to the airline. He framed the potential federal intervention as a means of safeguarding jobs, while making clear that any financial deal struck would need to benefit the government. "If we can help them, we will," Trump said. "But we have to come first." Those backing a rescue package - including trade unions representing Spirit's pilots and cabin crew - argue that a collapse would devastate jobs, reduce competition and push fares higher. Approximately 17,000 jobs could be at risk, according to Spirit lawyer Marshall Huebner. Sara Nelson, president of the Association of Flight Attendants, stated on Friday in a post on X that if Trump wished to assist the airline, "it's in his hands. "Everyday Americans will hurt," Nelson wrote, cautioning that ordinary consumers would also feel the strain alongside workers facing the prospect of losing their livelihoods should Spirit go under. Miami resident Caleb Euzebe, 27, who works for an insurance firm, said he flies Spirit "all the time" and likened the budget carrier to "that reliable car that you have. It always gets you from point A to point B safely." Euzebe, who was at Fort Lauderdale-Hollywood International Airport after his Spirit flight to Houston was cancelled on Friday, said he supported government intervention if it meant protecting jobs. Spirit's workforce need to "put food on the table, keep the lights on for their homes," he said. "So if that means that bailing them out keeps these people working, I support 100%." Spirit has been locked in a fierce battle against crippling financial difficulties since the COVID-19 pandemic, weighed down by rocketing operating costs and mounting debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had haemorrhaged more than $2.5 billion since the start of 2020. The budget carrier sought bankruptcy protection once again in August 2025, declaring $8.1 billion in debts against $8.6 billion in assets, according to court filings. Shortly beforehand, its parent company revealed in a quarterly report that it held "substantial doubt" over Spirit's ability to survive as a going concern over the following year, citing "adverse market conditions" - including sluggish leisure domestic travel demand and persistent "uncertainties in its business operations." The company, Spirit Aviation Holdings Inc., struck a more optimistic tone earlier this year, announcing in February that it had reached a provisional agreement with creditors and expected to emerge from Chapter 11 in late spring or early summer. The restructuring would give rise to "a new Spirit" - a leaner, stripped-back carrier still dedicated to low fares, but introducing premium economy options and a form of first-class seating with enhanced legroom for passengers willing to splash out a little extra. Instead, the conflict that erupted days later when the US and Israel launched strikes on Iran only worsened the airline's cash flow problems. With rocketing jet fuel costs tied to the war creating unexpected expenditure across the industry, Spirit's creditors last month raised serious concerns over whether it could continue trading, stoking speculation that the airline could be forced to sell off assets and shut down altogether. Should Spirit cease operations, budget-conscious and leisure travellers would likely feel the greatest impact - particularly in areas where the airline has a strong foothold, such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando, according to aviation analytics firm Cirium. The carrier transported approximately 1.7 million domestic passengers in February, roughly half a million fewer than during the same period the previous year, Cirium revealed. Spirit has also dramatically reduced its capacity. According to Cirium data, the number of seats available this month on Spirit flights stands at roughly half of what was on offer in May 2024: 1,646,878 compared to 3,399,378.