Spirit Airlines reached out to Trump administration for emergency bailout

Spirit Airlines has approached the Trump administration about an emergency bailout to keep the beleaguered discount carrier in business and avoid liquidation due to skyrocketing fuel prices, CBS News has learned. 

“Spirit is looking for a lifeline,” a source familiar told CBS News.

Some Spirit creditors have questioned the airline’s ongoing viability and are concerned the airline will not be able to make an upcoming multimillion-dollar debt payment due to surging fuel prices, raising the possibility that the carrier could be forced into liquidation in the near future. 

Spirit executives and other low-cost carriers are expected to meet with Transportation Secretary Sean Duffy next week. Duffy regularly meets with and checks in with all of the discount carriers, including Frontier, Allegiant, Avelo and Spirit. 

The Air Current was the first to report the news about Spirit Airlines seeking government assistance.

Spirit has not responded to CBS News’ requests for comment. The Department of Transportation declined to comment. 

“Spirit is flying on financial fumes,” airline industry analyst Henry Harteveldt told CBS News Wednesday. “I would tell Spirit flyers to start looking for backup reservations just to be on the safe side.”

If enough creditors decide to pull the plug, Harteveldt said operations could cease almost immediately, or creditors could give the airline some time to wind down operations.   

The ultra-low cost carrier was expected to exit bankruptcy – its second since 2024 – by this summer after reaching an agreement with creditors that would eliminate billions in debt and further shrink its fleet of Airbus jets. The deal came before fuel prices began spiking in late February due to the conflict in Iran. 

For years, Spirit was a high-flying, no frills, profit machine, but since the pandemic, the airline failed to merge with JetBlue as consumer tastes changed to favor a more premium style of travel that left the airline in dire financial straits.