Spirit Airways is on borrowed time unless an injection of cash can be found, as signaled by the lead counsel to the beleaguered low-cost carrier on its Chapter 11 restructuring.
According to CNBC, on April 23, 2026, Spirit’s lawyer Marshall Huebner told a bankruptcy court that the cash available to the airline to “fund ongoing operations is not going to last for very much longer”.
“So, either new financing, either or both of new financing or access to almost $240 million of restricted cash, is absolutely essential. Roundabout, no later than the end of next week,” Huebner added.
One option available to Spirit appears to be funding from the US government, with the Trump administration in advanced talks to provide the carrier with a potential $500 million rescue package.
In President Donald Trump’s latest comments, he went further than discussing emergency funding with the suggestion that the government could buy Spirit.
.@POTUS on Spirit Airlines: "I think we just buy it. We'd be getting it virtually debt-free. They have some good aircraft, good assets — and when the price of oil goes down, we'll sell it for a profit. I'd love to be able to save those jobs… I like having a lot of airlines so… pic.twitter.com/4AxH8ftuxE
— Rapid Response 47 (@RapidResponse47) April 23, 2026
“I think we’d just buy it. We’d be getting it virtually debt free. They have some good aircraft, have good assets, and when the price of oil goes down, we’ll sell it for a profit. I’d love to be able to save those jobs, I’d love to be able to save an airline. I like having a lot of airlines, so it’s competitive,” said President Trump during a press conference on the Middle East conflict.
President Trump also noted that an unnamed individual would like to run Spirit, describing them as a “smart person”.
“If they run it properly and if prices come down, all of a sudden it’s a valuable asset,” Trump said.
The possibility of the US government bailout has been met with fierce criticism, not least from Senator Ted Cruz, who described it as a “terrible idea”.
The Air Line Pilots Association, International (ALPA), has voiced their strong support for the Trump administration’s proposed relief effort for Spirit Airlines.
“Federal relief is not a handout,” said Capt. Ryan P. Muller, Chair of the Spirit Airlines ALPA Master Executive Council (MEC). “It is a loan that will allow the airline to finish the work that is already well underway, and it is the right call for 14,000 workers, nearly 2,000 pilots, the families who depend on those paychecks, and the millions of passengers who rely on affordable air travel. Any government relief must protect Spirit employees to ensure we can competitively move forward.”
Spirit’s CEO Dave Davis has also thanked President Trump for his support.
“We are grateful for President Trump’s support and look forward to continuing to work with him and his Administration on a solution that protects thousands of jobs, preserves and enhances competition and helps ensure Americans continue to have access to affordable fares,” Davis said.