Update: Friday, April 24, 2026, at 11:10 a.m. ET
The Trump administration's $500 million offer to save Spirit Airlines from liquidation is being reviewed by its major creditors, Marshall Huebner, an outside lawyer for the airline, told Reuters.
Huebner confirmed the ultra-low cost carrier has received a term sheet of the government's offer, which includes $500 million in financing and a condition that the government takes a 90 percent ownership stake, sources say.
While the carrier's future remains in limbo, a union representing some Spirit workers said any bailout package must protect the airline's 17,000-plus employees.
"No furloughs, no layoffs, and no shifting the burden onto the very people who keep this airline running," said the International Association of Machinists and Aerospace Workers, which represents the airline's ramp service employees.
President Donald Trump told reporters at the White House that his administration was looking to acquire the airline for the "right price."
"When the price of oil goes down, we would sell it for a profit," he said.
According to Huebner, Spirit needs new financing or access to $240 million of its funds by the end of next week to remain operable.
The potential bailout has unsurprisingly been met with pushback from lawmakers and rivals within the airline industry.
Original Text
Spirit Airlines is closing in on a $500 million rescue package from President Trump and his administration.
According to CNN, a source familiar with the negotiations said the deal could be announced this week and will likely include the federal government taking a stake in the beleaguered budget carrier.
Dania Beach, Florida-based Spirit has been struggling financially for years now, filing for bankruptcy multiple times amid failed mergers with JetBlue and Frontier Airlines.
Soaring jet fuel costs have threatened to put the final nail in Spirit's coffin.
The bailout would prevent widespread layoffs, stranded travelers and even higher airfares as U.S. airlines lose another rival in the event of a Spirit collapse. However, it could prove complicated as past federal government bailouts, including relief rendered in the wake of the COVID pandemic, have included the entire industry.
"The Trump administration continues to monitor the situation and overall health of the U.S. aviation industry that millions of Americans rely on every day for essential travel and their livelihoods," White House spokesman Kush Desai told CNN.
Spirit only said that it continues to operate its business as normal.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
