Trump says Spirit given 'final proposal' on bailout amid reports it may shut down [View all]

Source: NBC News

May. 1, 2026, 12:44 PM EDT


President Donald Trump said the White House had given Spirit Airlines "a final proposal" for a federal bailout to save the carrier, amid reports the troubled budget carrier is laying the groundwork to wind down its operations. The Wall Street Journal, The New York Times and Bloomberg News all reported Spirit is preparing for liquidation, after surging jet fuel costs made its planned exit from bankruptcy all but impossible.

Spirit had in recent weeks approached the White House seeking financial assistance — and Trump initially appeared receptive to the idea, proposing a $500 million package with the U.S. taking a stake in the company.

Yet the plan almost immediately ran into opposition from Wall Street, Capitol Hill and even a member of Trump’s own cabinet. Transportation Secretary Sean Duffy suggested a rescue would amount to tossing “good money after bad.”. “There’s been a lot of money thrown at Spirit, and they haven’t found their way into profitability,” Duffy said in an interview with Reuters. “And so would we just ​forestall the inevitable and then own that?”

But in remarks to the press Friday afternoon, Trump expressed doubts about the rescue. “We’re looking at it. But if we can’t make a good deal... no institution has been able to do it,” he said.

Read more: https://www.nbcnews.com/business/consumer/spirit-airlines-bailout-shut-down-rcna343089