Spirit Airlines to Shut Down After Failed $500M Bailout Talks; Trump Reviews Iran Ceasefire Proposal

Spirit Airlines announced on Friday that it will cease operations after talks for a $500 million bailout from the Trump administration failed to produce a deal. The low-cost carrier, which filed for Chapter 11 bankruptcy protection in November 2024 and again in August 2025, had sought the lifeline to address mounting debts and rising costs. 5 billion since the start of 2020.

6 billion in assets. President Trump told reporters at the White House on Friday that his administration had delivered a final proposal to Spirit Airlines and was still weighing a taxpayer-funded takeover. "We’re looking at it.

If we could do it, we’ll do it. But only if it’s a good deal," he said. S.

Interests. "I’d like to save the jobs," he stated. "If we can help them, we will. S. Bankruptcy Court that the airline was in advanced talks with the government over financing that could allow it to exit Chapter 11 protection.

-Iran war, decline. S. government financial lifeline. Spirit Airlines has struggled financially since the COVID-19 pandemic, burdened by rising operating costs and debt.

Stated in a quarterly report shortly before the August 2025 bankruptcy that it had substantial doubt about Spirit’s ability to stay in business over the next year. Earlier, in February, Spirit Aviation Holdings Inc. said it had reached a preliminary deal with creditors and expected to exit Chapter 11 in late spring or early summer.

U.S. and Israel launched strikes on Iran, has driven up jet fuel prices, intensifying Spirit's challenges. 50 price in February before the strikes.

14 in 2027, as detailed in its March disclosures. The airline plans to shrink its fleet to about one-third of its pre-bankruptcy size, or 76 to 80 aircraft, by the third quarter of 2026. United Airlines and American Airlines stated on Friday that they were preparing to support Spirit Airlines customers if the carrier shuts down.

Kirby added that Spirit's business model is flawed and will not cover cash operating costs. Spirit Airlines responded in a post on X that customers love the company’s affordable fares and product offerings. A spokesperson for Spirit, headquartered in Dania Beach, Florida, stated on Friday that the airline is operating as usual.

National Economic Council Director Kevin Hassett stated earlier this week that creditors could contribute more cash if they wanted to extend talks with Spirit. 7 million domestic passengers in February, roughly half a million fewer than in the same month a year earlier.

Cirium data also shows about half the number of seats available this month on Spirit flights compared to May 2024: 1,646,878 versus 3,399,378.

Separately, President Trump stated on social media Saturday evening that he was reviewing Iran’s latest ceasefire proposal but cannot imagine it would be acceptable. In a Truth Social post, Trump asserted that Iran has not yet paid a big enough price for what they have done to humanity and the world over the last 47 years.

Trump told reporters on Saturday evening, just before boarding an airplane in Palm Beach, Florida, that he had only been briefed on the concept of the deal with Iran and had not seen the details.

"They’re going to give me the exact wording now," he said. On Friday, Trump said he was not satisfied with the latest offer from Iran. Iranian state media reported that Iran sent its latest offer to Pakistani mediators on Thursday evening.

Iran's deputy foreign minister, Kazem Gharibabadi, stated in a meeting with foreign diplomats in Tehran on Friday that the ball is now in the United States’ court to choose between diplomacy or continuing a confrontational approach. Gharibabadi added that Iran was prepared to fight if military conflict between Iran and the United States resumed.

The White House did not immediately respond to The New York Post’s request for comment on the Spirit Airlines deal.

Trump previously said he would like someone to acquire the struggling airline.