Bankrupt discount carrier Spirit Airlines is preparing to cease operations after failing to secure agreement from key bondholders and the U.S. government on a proposed bailout plan, according to a report by The Wall Street Journal.
The airline, which has been operating under bankruptcy protection, had been in discussions over a potential $500 million rescue package backed by the federal government. However, negotiations reached an impasse, preventing a deal from moving forward, the Journal reported.
A court hearing tied to the proposed rescue, originally scheduled for Thursday did not take place following the breakdown in talks, Reuters reported.
President Donald Trump, however, says he’s still looking at a taxpayer-funded takeover of Spirit Airlines.
“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 as he prepared to leave the White House for a trip to Florida.
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.”
“We’re looking at Spirit and if we can help them, we will. But we have to come first,” he said.
A spokesperson for Spirit Airlines “declined to comment on ongoing discussions,” but said “Spirit is operating as usual.”
Copyright 2026 by WPLG Local10.com - All rights reserved. The Associated Press contributed to this report.
