MIAMI (VINnews) – Spirit Airlines appears to be nearing a shutdown after months of financial turmoil and failed rescue efforts.

According to a report by The Wall Street Journal, the ultra-low-cost carrier is preparing to cease operations following the collapse of a proposed $500 million government bailout. The deal reportedly fell apart as the airline ran out of both time and cash, while bondholders rejected key terms.

President Donald Trump said Thursday he had considered a taxpayer-backed intervention to stabilize the airline, with the possibility of reselling it once economic conditions improve.

“They have some good aircraft and good assets,” Trump said during an Oval Office appearance. “I’d love to be able to save those jobs. I’d love to be able to save an airline.”

Spirit Airlines has struggled under mounting debt, rising operating costs and unsuccessful merger attempts. The carrier filed for Chapter 11 bankruptcy protection in November 2024 and again in August 2025 as it attempted to restructure.

Industry pressures have intensified, particularly with rising jet fuel costs linked to regional instability involving Iran. Creditors in recent weeks have expressed growing skepticism about the airline’s ability to continue operating.

The situation remains fluid, and further developments are expected.