Talks to bail out Spirit Airlines stall as company teeters toward collapse

April 30, 2026

TL;DR

Spirit Airlines has only a few days of cash left to operate.
Talks for a government-backed rescue have stalled.
The Trump administration offered a $500 million loan for 90% control.
Some Spirit bondholders are rejecting the government deal.
Citadel's counterproposal was rejected by the government.
Ares Management Corp. and Cyrus Capital are also opposed to the government plan.
A bankruptcy hearing was postponed while bailout discussions continue.
Spirit recently skipped an interest payment, potentially triggering a default.
President Trump is open to a government takeover at the 'right price' to save jobs.
The government may use the Defense Production Act to extend a loan.
Spirit's excess capacity could be used for military operations.

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