Spirit Airlines inches from collapse after two major creditor blocs lined up behind Donald Trump’s $500mn lifeline, enough to pull the carrier from bankruptcy. Senior lenders and unsecured creditors, once facing total wipeout, accepted the offer rather than risk $4bn in liquidation losses while preserving 17,000 jobs. Spirit Airlines now hinges on the remaining holdouts.

Bondholders holding nearly $900mn in face value remain split, with top lenders including Citadel Americas weighing new debt and a 10 percent equity slice against total exposure. Analysts doubted Spirit could survive as a standalone airline even before fuel spikes and tens of millions in early losses drained cash. A Trump priority loan with 90 percent warrants would recapitalize the balance sheet and unlock restricted funds.

A New York federal bankruptcy hearing could follow if the last faction concedes, ending a standoff where each side risks blame for failure. Liquidation would erase unsecured claims, while the bailout secures jobs and narrows ownership to a reorganized carrier under close political sponsorship.