White House's Last-Ditch Attempt to Save Spirit Airlines

President Donald Trump announced efforts to save Spirit Airlines from bankruptcy with a final proposal for its creditors. The budget carrier has faced financial difficulties, exacerbated by war-related fuel cost spikes. The White House explores options, including a $500 million bailout, stirring debates within the administration.

President Donald Trump on Friday revealed that the White House has extended a final proposal to Spirit Airlines and its creditors in a bid to rescue the bankrupt airline. As the budget carrier edges close to shutting down operations, Trump expressed a willingness to help, although he emphasized that any arrangement must be favorable.

The Wall Street Journal reported Spirit's preparations to cease operations if talks over a $500 million government bailout remain unresolved. The White House has engaged other airlines to ensure that passengers with Spirit bookings are not left stranded, with United Airlines ready to step in if needed.

Last month, Trump suggested acquiring Spirit Airline, proposing $500 million financing for 90% equity. Internal disagreements have emerged over the bailout's structure, with not all Spirit bondholders supporting the plan. Meanwhile, the ongoing Iran war has disrupted Spirit's cost assumptions, with jet fuel prices soaring and further complicating Spirit's financial recovery.