I feel like I’m living in an alternate universe, because none of this makes sense, as it looks increasingly likely that the government may just buy Spirit Airlines…
In this post:
Spirit Airlines is days from running out of cash, liquidating
We’ve known that Spirit Airlines is on the verge of liquidation, as the carrier is in Chapter 11 bankruptcy for the second time in a couple of years. While the massive increase in the cost of jet fuel has no doubt made things tougher, the reality is that Spirit didn’t have a viable business model even before that, and hasn’t turned a profit in seven years.
In a bankruptcy court hearing today (Thursday, April 23, 2026), a lawyer for the ultra low cost carrier indicated that the company’s current cash will run out in the coming days, if the airline doesn’t get more funding. As the lawyer explained:
“The cash actually available to Spirit to fund ongoing operations is not going to last for very much longer. So either new financing, either or both of new financing or access to almost $240 million of restricted cash, is absolutely essential. Round about, no later than the end of next week.”
This is more or less what we were expecting and what we had heard. Quite honestly, with everyone knowing that Spirit is on the verge of liquidation, I have to imagine this makes the cashflow situation even worse, since no one in their right mind would be booking a ticket on Spirit at the moment, given all the uncertainty.
Trump seems increasingly onboard with buying Spirit Airlines
Several days ago, we learned how Spirit Airlines had floated the idea of a government bailout in exchange for equity, which is a completely absurd idea… except for the fact that President Trump seems fully onboard with it? Yesterday we learned how Trump is seriously considering a bailout of up to $500 million for the airline, which could get the government up to a 90% stake in the carrier.
Trump doubled down on that plan today, saying:
“I think we just buy it. We’d be getting it virtually debt-free. They have some good aircraft, good assets — and when the price of oil goes down, we’ll sell it for a profit. I’d love to be able to save those jobs… I like having a lot of airlines so it’s competitive.”
Trump talking out of his you-know-what is nothing new, but this is misguided on every level:
- Spirit has some “good aircraft” — a bunch of used A320/A321s are “good aircraft” that are somehow worth saving? And these are mostly leased, as at this point Spirit owns very few aircraft
- Spirit has some “good assets” — like what?
- Trump wants to sell Spirit for a profit, but Spirit doesn’t have anything that anyone else wants, or else they would’ve already bought the airline
- I’m all for saving jobs, but the issue is that there’s no viable business model here
I just can’t wrap my head around the logic of any of this, and this is going to be such a mess. I hate to see people lose their jobs, of course, but there’s only so much money you can pour into an airline before it’s time to give up.
Again, it’s one thing if Spirit’s issues were simply related to the current jet fuel crisis. However, Spirit hasn’t been profitable in seven years, has the industry’s worst margins, and even before the current situation, there was almost no upside.
It amazes me the mental gymnastics some people are using to justify this as anything other than absurd. “Oh, but Amtrak is also government subsidized.” Right, it’s the only national rail service. That’s a little different than the airline industry, where there’s quite a bit of competition.
Can we expect that other money losing airlines will also be government owned? Frontier, JetBlue, etc.? Or why is Spirit special? Just because it’s based in Florida, not far from Mar-a-Lago?
Before anyone accuses me of this being politically motivated and anti-Trump, let me be very clear — I think it was dumb of the Biden administration to block JetBlue’s takeover of Spirit. That’s something I consistently said, and was very vocal about. Now, in retrospect that was probably a good thing for JetBlue, but it doesn’t change the current reality of the situation that Spirit is in, and how the market has evolved.
Bottom line
One of Spirit Airlines’ lawyers reports that the company is just days from running out of cash and potentially liquidating, which isn’t much of a surprise. At the same time, Trump is doubling down on the concept of having the government bail out the airline, which could see the government take control of 90% of the airline.
Trump claims that Spirit has “good aircraft” and “good assets,” and he’d “love to be able to save those jobs.” While I agree it’s a shame if jobs are lost, the reality is that Spirit will likely just continue to lose money, so this is an absolute money pit.
What do you make of this whole Spirit situation?
When the facts get co mingled with politics the logic of the conversation ends
I'm sure that Spirit is actively looking for investors to step up and purchase what's left of it. If Spirit was a good deal and could be sold at a profit in the short term, why hasn't anyone else come forward? How about Don Jr. and the Trump companies? Maybe because it's really not a good deal? IMO, the Chrysler bailout should not have happened, and this bailout should not either. Let the marketplace decide.
I love watching how the 20% gets its panties in a bunch over rescuing an airline that millions have depended upon to travel. Have you seen the prices on Greyhound lately? More than the airlines charge in advance. We need a dependable airline that can get people where they want to go at a price they can afford. After all, most of the concern over the price of gas is Trump's fault due to the war. Let him pay for the collateral damage.
If one had a ‘hit list’ your Mr ‘rump would be at the top of mine …. what an absolute “Plonker Rodney” …. :-(
Spirit is not a viable business—as evidenced by two trips to bankruptcy court—and the loss of jobs is regrettable and unfortunate. However, it's not the duty of taxpayers to subsidize businesses. Let Spirit liquidate, and hopefully other carriers can pick up the profitable capacity and hire some of the workers.
Another vote for Citi and the secured creditors. Suck it unsecured creditors, workers, and consumers! /s
With all of the opposition during the past 24 hours it would be no surprise to see this deal just dangle in the wind. Moreover, if a deal is announced there well could be an emergency filing to institute a stay pending a final court hearing. Spirit would not be able to survive to a court making a final ruling.
Dangle in the wind? More like a fart in the wind…
Who are the current debt holders of Spirit? How much have they contributed to Trump?
Citi is one. They’re a secured creditor. They’d rather Spirit liquidate.
The bailout talk is likely to benefit Trump’s insiders who are unsecured; it’d only be an incidental benefit to workers and consumers who may benefit for its survival.
Besides, isn’t Congress supposed to pass the legislation to bail out businesses? Oh, silly rules…
If Trump wants to buy it himself, I say great. But it shouldn't involve any taxpayer funds. If not, let Spirit become a spirit in the graveyard of forgotten airlines.
Trump is literally behaving like a socialist and all the socialists on this site are losing their minds! The level of derangement is amazing!
More specifically, a national-socialist!
(And, you’re right, we are opposed to that.)
Not at all. I'm a socialist and love the idea of buying Spirit and making it a national corporation. We need to ensure that low fares are in the market for the working class. That's the way Trump is thinking, and he should be encouraged to do so.
It amazes me that people don't realize that the party has been taken over by conservative socialists. Ronald Reagan is turning over in his grave.
Mark my words. If Spirit gets bought they will coincidentally rebrand as Trump airlines
What happened to the pledge of smaller government? After the Big Beautiful Bill expanded the national debt by the largest amount in history, he's asking for another $1.5 trillion. Trump has betrayed the MAGA movement.
Rather spend money on this than more welfare for "them".
that's actually a truly solid point. I don't think govt should get involved with Spirit, but we're blowing hundreds of billions on fraud and welfare for foreigners. might as well subsidize Spirit with like $1B a year - nobody will notice. California probs frauds that much a week.
lol. Hundreds of billions. I feel like it’s likely more than that. People are saying it’s upwards of $179.3 TRILLION per WEEK that taxpayers are paying for these people who are just looking for a better life….much like your ancestors and mine. But yes, we MUST pull the ladder up behind us.
Also, pay no mind to the other, much more expensive things we waste money on other than socioeconomic programs.
Right lol, the famous free healthcare, food stamps, and learing centers of settlers lol. Got me there.
And look, I'm all for it, help is good. I heard you're a really good person and you just want to help people who are just looking for a better life. So go ahead, nothing stopping you from giving 30-40-90% of your pay to foreigners. Just don't force the rest of us, not so good persons, to do it.
AndyS, the notorious bigot has returned; did they finally get the internet back in Russia? By ‘them’ you’re referring to the people you hate. Please, be more specific; go ‘hard-r’ if that’s how you really feel. No more thinly-veiled stuff. No more dog-whistles. Don’t hide.
Trump also said he’s got somebody really good in mind to run Spirit. Any bets on who that might be?
Marco Rubio!
“So, Spirit is an airline that’s had some trouble. They were going to merge with People Express or one of them a number of years ago, and Barack Hussein Obama decided it was a bad idea,” said Trump. “How did that work out? It was bad for both of them. That would have been a natural merger.” - Orange Pedo
People Express? Huh he is stuck in the 1980s
Obama ? It was Biden.
This is the person who is the President of the United States? WTF
Ben's left wing bias is so obvious. Keep crying snowflake.
Suck it, fascist
Pinochet did nothing wrong.
There he is… AndyS, the simple-bigot. So, you hate ‘big-government’ but like the CIA? Pick a lane, loser…
What the hell are you talking about? Spirit is a failed business, and only the worst kind of moron would consider acquiring it. Of course that means Trump is a perfect candidate, given what a terrible businessman he's been for his entire career. It's also not up to the president to approve government spending. The constitution makes it clear that the Congress controls the purse-strings. Go read it sometime, and you might learn something.
Investors that are MAGA supporters think this is a terrible idea. Spirit has nothing to offer. Planes are leased. They returned anything of value to lessors. They don’t have assets. They are paying debt. The employees will certainly lose out but many opportunities at other carriers even some that are overseas who would love a U.S. pilot with 1500 hours plus flight time.
Did Trump protect the 10,000 jobs Oracle slashed. Nope. Today, Meta...
Investors that are MAGA supporters think this is a terrible idea. Spirit has nothing to offer. Planes are leased. They returned anything of value to lessors. They don’t have assets. They are paying debt. The employees will certainly lose out but many opportunities at other carriers even some that are overseas who would love a U.S. pilot with 1500 hours plus flight time.
Did Trump protect the 10,000 jobs Oracle slashed. Nope. Today, Meta announced 8,000 will lose their jobs. Blaming Biden, Obama, Hilary, drag queens, DEI, and trans folks just doesn’t cut it as President Trump is approaching the two year mark of his presidency. Where is the money coming from? Trillions wasted on war material that needs to be replenished. No tariff money because Trump’s Supreme Court shut it down. Trump slashed the IRS ability to go after tax cheats. Please show me the money to pay for all this.
Left wing bias? The government owning an airline is literally communism. Trump is a communist and his supporters are so uneducated that they can't tell AND continue to throw "socialism" around as a slur for the OTHER side. You people are fools.
Just what the United States needs...our very own Egypt Air.
Well, what can we expect from such a successful businessman than a utterly wretched deal nearly guaranteed to add to our debt?
This will set a record as the fastest he’s run a company into the ground (especially since it’s already there).
And that's already a very low bar as he bankrupted a casino!! in six months after opening
With such good assets and aircraft, hopefully Trump and all his staffers exclusively fly on Spirit, and while at it augment their good aircraft giving away that 747 jet Trump was gifted from the Qatar government
art of the deal lmao
Art of the steal.
I booked a ticket on Spirit for 2 weeks from now using the last of my points. Thank you for insulting my mental capacity, travel blogger... one can hope Trumps makes money off of this the same way TAARP equity stakes in the banks turned a handsome profit.
If Trumps (sic) is making money off of this deal, then something illegal is involved...
...which could very well be the case, given this administration's track record.
That said, in normal times, if the U.S. government is buying or bailing out the airline, the President shouldn't be seeing a penny out of the transaction.
Never saw “insanity” in your Biden article headlines, or any articles at all about the very infamous Sam Brinton. But that’s okay, appreciate the baby steps here.
i know you know this already and are just saying it to troll, but this is because biden's worst aviation decision, blocking b6's acquisition of nk, was an ill-conceived move but far from insane; whereas the spirit bailout is elbow-lickingly insane
This makes me proud to be American.
Follow the money, Frank Holmes’s the largest shareholder ( via hedge funds) in Spirit is a Trump pleaser, has been investing indirectly in the power generation needs of the new AI data centres under construction in the US, I am sure investigative journalists will be able to peel back the layers in time and expose this as yet another insider deal.
The corruption really is bottomless with this fat orange Nazi, isn’t it?
I mean, this is just beyond silly (the business judgment is silly, not the loss of jobs which is certainly not silly), but perhaps the more interesting thing is the statement that he likes having lots of airlines around so it's competitive. Not that his words have meaning, but that sure sounds consistent with the Biden antitrust department's approach, no? So if that's his philosophy, can United really acquire JetBlue? And how do you then...
I mean, this is just beyond silly (the business judgment is silly, not the loss of jobs which is certainly not silly), but perhaps the more interesting thing is the statement that he likes having lots of airlines around so it's competitive. Not that his words have meaning, but that sure sounds consistent with the Biden antitrust department's approach, no? So if that's his philosophy, can United really acquire JetBlue? And how do you then blame Biden for blocking Spirit-JetBlue? I guess if you have unlimited sides of a mouth...
@Peter I think there is a difference. What can be understood from Ben’s previous articles is that it was not the correct decision to block the merger of JetBlue and Spirit and as a result this is what is happening now. Both of these airlines have already shown that they are not doing well financially so that merger could have helped. It is possible with that merger not being blocked both of these companies may...
@Peter I think there is a difference. What can be understood from Ben’s previous articles is that it was not the correct decision to block the merger of JetBlue and Spirit and as a result this is what is happening now. Both of these airlines have already shown that they are not doing well financially so that merger could have helped. It is possible with that merger not being blocked both of these companies may be doing at least a bit better than now. Also, it is not the exactly the same if United wants to acquire Jetblue because unlike JetBlue and Spirit United is in a much better financial position than those two are.
Wow. You really understand very little about the aviation sector. What a nonsensical post. You must be a Chump adviser.
Trump and bankruptcy, name a better duo
Trump and Epstein
Love you, Gva.
Tim Dunn & 1,000 word rants
Damn I can’t decide which of those 3 to vote for…