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

Spirit Airlines only has enough available cash to continue operations for a matter of days, not weeks, and talks for a government-backed rescue of the no-frills carrier have stalled, according to multiple sources familiar with the discussions. Facing two bankruptcies since 2024 and rising fuel prices due to the Iran war, Spirit has sought a lifeline from the federal government. The Trump administration has offered to come to the airline's aid, weighing a deal in which the government would lend Spirit $500 million in exchange for the right to take control of 90% of the company, CBS News has previously reported. But the deal — which would make the government the senior bondholder, meaning it would get paid back before others — won't happen unless Spirit's creditors sign off. Some of Spirit bondholders continue to balk at a government deal, sources said. Ken Griffin's Citadel submitted a counterproposal, but it was rejected by the government. Two other creditors — Ares Management Corp. and Cyrus Capital — are also opposed to the government plan, two U.S. officials told CBS News. A bankruptcy hearing planned for Thursday was postponed, according to a Wednesday court filing that noted conversations on the government bailout package are continuing. Last week, it was revealed in a bankruptcy court hearing that Spirit skipped an interest payment, which could put the airline in default on its debtor-in-possession agreement with creditors. …