Spirit Airlines is preparing to fly off into the sunset and shut down operations.
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But President Donald Trump stated today, May 1, that he is considering whether the government should directly support Spirit Airlines by funding a temporary takeover of the struggling budget carrier.
What Happened to Spirit Airlines?
We reported several weeks ago that Spirit Airlines filed for bankruptcy protection for the first time in Nov. 2024. The airline briefly exited protection. It filed for Chapter 11 bankruptcy again in Aug. 2025, marking its second filing within a year.
The company announced a restructuring agreement and reorganization plan in March to reduce its debt and hoped to exit bankruptcy protection in early summer.
But with jet fuel costs rising due to the conflict in the Middle East, the company ran out of money fast. This prompted lenders to consider liquidating Spirit Airlines rather than completing the restructuring.
Will the Government Step In to Rescue Spirit Airlines?
Should Spirit Airlines shut down, there's little chance it will be missed. Not a week goes by without a report of a fight, an attack on staff, or some odd incident that has passengers reconsidering whether they should have bought that ticket.
However, there are good people with good jobs working for the company. According to the Associated Press, President Trump said he wants to help them avoid unemployment.
"We're looking at Spirit, and if we can help them, we will. But we have to come first," he said.
President Trump first mentioned the idea last week. He suggested that the government would temporarily take over Spirit Airlines. It would then resell the company for a profit once oil prices went down.
Meanwhile, a lawyer for the airline told a U.S. Bankruptcy Court a week ago that it was in advanced talks with officials on a financing deal that would allow it to exit bankruptcy.
President Trump said he would make an announcement on the matter on Friday or Saturday.
Labor groups support government intervention, but lawmakers from both parties question using taxpayer dollars to support Spirit Airlines. They debate whether a federally backed takeover would rescue Spirit Airlines or merely postpone its closure.
