‘Barron’s Roundtable’ panelists discuss investment opportunities among airline stocks.
President Donald Trump said Friday that the U.S. gave Spirit Airlines a final bailout proposal to aid the beleaguered carrier.
“We’re looking at Spirit. If we can help them, we will, but we have to come first,” Trump said. “If we could do it, we’d do it, but only if it’s a good deal.”
He also said an announcement would be coming soon.
Spirit has been seeking a lifeline from the U.S. government to the tune of $500 million. The Wall Street Journal reported on Friday that the airline is preparing to end operations after a deal could not be reached between certain bondholders and the government.
TED CRUZ POURS COLD WATER ON TRUMP ADMINISTRATION PLAN TO BAIL OUT SPIRIT AIRLINES: ‘TERRIBLE IDEA’
Spirit Airlines airplanes at Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida. (Eva Marie Uzcategui/Bloomberg via Getty Images)
Sources later said the administration had proposed $500 million in financing in exchange for warrants equivalent to 90% of Spirit’s equity.
There had been disagreements inside the Trump administration over whether and how to fund the bailout, the report said, citing people familiar with the matter.
Not all Spirit bondholders were on board with the deal, the report added.
Trump previously said he was interested in helping the airline.
“If we could get it for the right price, I’d do it to save the jobs,” he said during an event at the Oval Office last week.
WHAT A GOVERNMENT STAKE IN SPIRIT AIRLINES COULD MEAN FOR PASSENGERS AND THE INDUSTRY
Passengers check in for their Spirit Airlines flights at O’Hare Airport on March 10, 2026, in Chicago, Illinois. (Scott Olson/Getty Images / Getty Images)
Meanwhile, major carriers are making plans if the carrier shuts down.
United Airlines and American Airlines said they are ready to assist Spirit passengers. American also said it has capped ticket prices on routes where it directly competes with Spirit to help limit disruptions.
“To help customers whose travel may be disrupted, we immediately implemented fare caps on Main Cabin tickets for Spirit routes where we also offer nonstop service,” American said, according to Bloomberg Law.
Frontier Airlines said it is also prepared to accommodate travelers, emphasizing “low-cost” options if Spirit ceases operations.
RISING FUEL COSTS THREATEN SPIRIT AIRLINES’ BANKRUPTCY EXIT PLAN: REPORTS
United States President Donald Trump speaks to the press before departing the White House for Florida on May 1, 2026, in Washington, DC. (Celal Gunes/Anadolu via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FLYYQ | SPIRIT AVIATION HOLDINGS INC | 1.045 | -0.35 | -25.36% |
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“We are ready to support customers who may be impacted if Spirit Airlines ceases operations, with a focus on helping people continue their travel plans with low-fare options,” Frontier wrote on X.
Spirit declined to comment on ongoing discussions.
“Spirit is operating as usual,” a company spokesperson told Fox News in an email.
Reuters contributed to this report.
