United Airlines, American Airlines, Frontier Airlines and JetBlue said they are preparing to assist Spirit Airlines customers if the carrier shuts down.
Donald Trump said on Friday the White House had presented Spirit Airlines and its creditors with a final proposal to try to rescue the bankrupt carrier, even as it prepares to shut down without a last-minute deal.
“We’re looking at Spirit Airlines. If we can help them, we will, but we have to come first,” Donald Trump told reporters. “If we could do it, we’d do it, but only if it’s a good deal.”
Trump added that he expected an announcement later on Friday.
Four people familiar with the matter confirmed a report by The Wall Street Journal that Spirit Airlines is preparing to cease operations as early as 3am on Saturday (7am GMT), after reaching an impasse with some creditors over a $500 million government bailout plan.
A board meeting was under way on Friday after market hours to decide on the timing, though no final decision had been made, they said. Any shutdown would require board approval and would likely take place overnight rather than during the day, one source added.
If approved, the airline would begin an orderly wind-down — halting flights overnight, repositioning aircraft for return and sending crews home.
“The Trump Administration made an extraordinary effort to try and save Spirit, but you can’t breathe life into a corpse. Given that, the company should make its intentions clear for the sake of its customers and employees,” a creditor close to the deal said.
A company spokesperson declined to comment on the ongoing discussions and said the airline is operating as usual.
The White House has reached out to other airlines to help accommodate passengers if Spirit halts operations. United Airlines, American Airlines, Frontier Airlines and JetBlue said they are preparing to support affected customers. American Airlines also said it has capped fares on routes where it competes with the budget carrier.
Association of Flight Attendants President Sara Nelson said the airline’s fate was in the hands of Donald Trump and warned that a shutdown could cost nearly 20,000 jobs.
Financing for equity
Trump said last month that his administration was considering buying the embattled carrier at the “right price.” Sources later said the proposal included $500 million in financing in exchange for warrants equivalent to 90% of Spirit’s equity.
There have been disagreements within the administration over whether and how to fund the bailout, the Journal reported, adding that not all bondholders supported the plan.
A rescue hearing scheduled for Thursday did not take place as negotiations continued. The airline’s collapse would mark the first aviation casualty linked to the Iran war.
Spirit’s volatile over-the-counter stock was last down 25% on Friday. Shares of Frontier Airlines rose 10%, while JetBlue gained 4%.
The airline had earlier reached a deal with lenders aimed at exiting its second bankruptcy by late spring or early summer, but those plans were derailed after the conflict drove a sharp spike in jet fuel prices, disrupting cost projections.
Spirit had based its turnaround plan on jet fuel costs averaging about $2.24 per gallon in 2026 and $2.14 in 2027. By the end of April, prices had surged to around $4.51 per gallon — roughly double the levels assumed in its forecasts.
