President Donald Trump has teased a bailout for a major US airline potentially facing bankruptcy – as fed-up passengers take to social media to demand refunds.

Trump stated on Friday that his administration was still considering a taxpayer-funded takeover of Spirit Airlines, with negotiations continuing and no definitive decision yet reached.

The government could proceed with a potential bailout for the carrier, which has found itself mired in bankruptcy proceedings for the second time in under two years – however the President appears to be keeping his cards close to his chest.

He stressed that a rescue deal for the financially troubled airline remained under consideration, declining to elaborate but indicating that an announcement could follow later on Friday or Saturday.

“We’re looking at it. If we could do it, we’ll do it. But only if it’s a good deal,” he said, speaking to reporters before leaving the White House for Florida.

The prospect of a bailout first came to light publicly last week, when Trump floated the notion of the US government extending Spirit a financial lifeline to prevent the airline from collapsing entirely. Separately, a lawyer representing the airline informed a U.S. Bankruptcy Court that Spirit was in advanced discussions with the government over financing that could enable it to emerge from Chapter 11 protection.

The president suggested the government would be in a position to resell the airline at a profit once oil prices, driven up by the Iran war, begin to fall. Politicians from across the political divide, as well as certain members of the Trump administration, have voiced opposition to the notion of using taxpayer money to prop up the ultra-low cost carrier.

Speculation surrounding Spirit’s future and the prospect of a deal being struck has intensified with each passing day as the airline’s operating costs and debts continue to pile up.

A spokesperson for Spirit, which is headquartered in Dania Beach, Florida, declined to comment on ongoing negotiations on Friday, stating that “Spirit is operating as usual.”

Despite flights still being bookable via the airline’s website on Friday afternoon, passengers with existing reservations or credits inundated Spirit’s X feed with queries about forthcoming flights and demands for refunds. Several airlines, meanwhile, indicated they were prepared to step in and assist Spirit customers should the airline collapse.

American Airlines announced it was capping main cabin fares on routes where it operates nonstop services alongside Spirit. Budget rival Frontier posted on X that it was “ready to support customers who may be impacted if Spirit Airlines ceases operations.”

Earlier in the day, Trump revealed that his administration had put forward what he described as a “final proposal” to the airline. He framed the potential federal intervention as a means of safeguarding jobs, while emphasising that any financial agreement reached would need to be of benefit to the government. “If we can help them, we will,” Trump said. “But we have to come first.”

Those in favour of a rescue — including trade unions representing Spirit’s pilots and cabin crew — argue that a collapse would devastate jobs, diminish competition and drive fares up. Approximately 17,000 jobs could be at risk, according to Spirit lawyer Marshall Huebner.

Sara Nelson, president of the Association of Flight Attendants, stated on Friday in a post on X that if Trump wished to assist the airline, “it’s in his hands.

“Everyday Americans will hurt,” Nelson wrote, warning that ordinary consumers would also feel the pinch alongside employees who face losing their livelihoods should Spirit fold.

Miami resident Caleb Euzebe, 27, who works for an insurance firm, said he flies Spirit “all the time” and likened the budget carrier to “that reliable car that you have. It always gets you from point A to point B safely.”

Euzebe, who was at Fort Lauderdale–Hollywood International Airport after his Spirit flight to Houston was cancelled on Friday, said he backed government intervention if it meant preserving jobs.

Spirit’s workforce have to “put food on the table, keep the lights on for their homes,” he said. “So if that means that bailing them out keeps these people working, I support 100%.”

Spirit has been battling severe financial difficulties since the COVID-19 pandemic, burdened by soaring operating costs and mounting debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had haemorrhaged more than $2.5 billion since the start of 2020.

The budget airline sought bankruptcy protection once more in August 2025, declaring $8.1 billion in debts against $8.6 billion in assets, according to court filings.

Shortly beforehand, its parent company disclosed in a quarterly report that it harboured “substantial doubt” over Spirit’s ability to remain a going concern over the following year, pointing to “adverse market conditions” — including sluggish leisure domestic travel demand and persistent “uncertainties in its business operations.”

The company, Spirit Aviation Holdings Inc., offered a more upbeat outlook earlier this year, announcing in February that it had struck a preliminary agreement with creditors and anticipated emerging from Chapter 11 in late spring or early summer. The restructuring would give rise to “a new Spirit” — a trimmed-down, leaner carrier still committed to low fares, but introducing premium economy options and a form of first-class seating with enhanced legroom for passengers prepared to pay a little extra.

Instead, the conflict that erupted days later when the US and Israel launched strikes on Iran only deepened the airline’s cash flow difficulties. With soaring jet fuel costs linked to the war creating unforeseen expenses across the industry, Spirit’s creditors last month raised serious doubts over whether it could remain operational, fuelling speculation that the airline could be forced to offload assets and shut down entirely.

Should Spirit cease operations, budget-conscious and leisure travellers would likely bear the brunt of the impact — particularly in areas where the airline has a significant presence, such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando, according to aviation analytics firm Cirium.

The carrier transported approximately 1.7 million domestic passengers in February, roughly half a million fewer than during the same period the previous year, Cirium revealed. Spirit has also drastically scaled back its capacity. According to Cirium data, the number of seats available this month on Spirit flights stands at roughly half of what was on offer in May 2024: 1,646,878 compared to 3,399,378.