West Palm Beach, May 2 (AP) Cash-strapped Spirit Airlines appeared closer to a shutdown after Friday came and went without a needed government bailout.

President Donald Trump said Friday that his administration had given the budget carrier a “final proposal” for a taxpayer-funded takeover to keep it from going under, but the absence of a deal put the airline's future in doubt.

A person familiar with the matter said preparations were being made for a Saturday shutdown. They spoke on condition of anonymity because they were not authorised to disclose confidential information. There was no immediate word from Spirit Airlines or the Trump administration.

Trump floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years with jet fuel prices soaring because of the Iran war. About 17,000 jobs could be impacted by a shutdown, Spirit lawyer Marshall Huebner said.

Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had lost more than USD 2.5 billion since the start of 2020.

The budget carrier sought bankruptcy protection again in August 2025, when it reported having USD 8.1 billion in debts and USD 8.6 billion in assets, according to court filings. (AP) GSP

Bankruptcy and bailout pressure left Spirit Airlines facing shutdown risk amid mounting debt and repeated insolvency filings. Spirit Airlines faced an acute shutdown risk after the expected government bailout did not materialise, leaving its future uncertain amid a reported final proposal for a taxpayer-funded takeover. The airline's financial distress arose against the backdrop of repeated bankruptcy proceedings, rising operating costs, mounting debt and higher jet fuel prices, with prior Chapter 11 protection and later bankruptcy filings reflecting continuing balance-sheet strain.