ToplinePresident Trump told reporters on Friday he would still like to see the government rescue Spirit, but some familiar with the deal say his America First terms are untenable. US President Donald Trump told reporters Friday that the Spirit bailout is not dead. (Photo by SAUL LOEB)AFP via Getty ImagesKey FactsPresident Trump on Friday told reporters “we're looking at it” when asked about a reported $500 million bailout that would give the U.S. government the right to take a 90% stake in Spirit Airlines. The president appeared to compare the deal to the acquisition last year of roughly 10% of Intel, saying the government made a $40 billion profit—though the unrealized, on-paper gain is closer to $27 billion.Spirit Airlines is preparing to cease operations after a government bailout deal failed, The Wall Street Journal reported Friday.Some of Spirit’s bondholders—including billionaire Ken Griffin’s Citadel hedge fund—balked at the government’s insistence on being paid back before other creditors, CBS News reported.The government’s offer was an untenable proposal, a person familiar with the deal told Forbes, adding that it would wipe out creditors’ positions and violate their fiduciary obligations to investors.Spirit would run out of operating cash within days, the carrier’s attorney told its bankruptcy judge. A spokesperson for Spirit declined to comment on ongoing discussions but told Forbes “Spirit is operating as usual.” Jet fuel was $4.51 a gallon Thursday on the Argus U.S. Jet Fuel Index—up 80% since the U.S. and Israel launched initial airstrikes against Iran nearly nine weeks ago. Contra“It’s horsesh*t,” Senator Tom Tillis, R-N.C., told Semafor. “My God: 10% stake in Intel, 5 to 50% stakes in three or four mining companies, ‘golden share’ of US Steel —and now a half a billion-dollar stake in Spirit Airlines.” Will More U.s. Airlines Be Killed Off By Jet Fuel Prices?The price of jet fuel—which normally accounts for up to 30% of an airline’s overall costs—skyrocketed in March, wiping billions of dollars from U.S. airlines’ bottom lines in the first quarter. American Airlines told investors its jet fuel bill will increase by $4 billion in 2026. In the second quarter, Delta Air Lines said it will spend $2 billion more on fuel than it previously planned and Southwest Airlines called it “a billion dollar headwind.” Aside from Spirit, the most vulnerable carriers are budget airlines Frontier and JetBlue, which have struggled to be profitable since the Covid pandemic. Separate from the failed Spirit rescue, a group of budget airlines asked the Trump administration for $2.5 billion in government aid to address the spike in jet fuel costs during the U.S.-Israeli war on ​Iran. Asked about a possibility of government assistance, JetBlue Airways CEO Joanna Geraghty told investors this week, “Never say never. We’re open to anything and everything, assuming the terms would make sense for JetBlue.”Big Number1.7 million. That’s the number of domestic passengers Spirit Airlines flew in February, according to Cirium data. That represented a 3.9% U.S. market share, down from 5.1% last year.What We Don’t KnowWhen jet fuel prices will decline. “We're looking at probably a six month or longer timeline for the supplies of jet fuel to get back to normal, or even close to normal, levels,” Henry Harteveldt, president of Atmosphere Research Group, a travel market research and advisory firm, told Forbes. Crucial Quote“The Trump Administration made an extraordinary effort to try and save Spirit, but you can’t breathe life into a corpse,” a creditor close to the deal told Forbes. “Given that, the company should make its intentions clear for the sake of its customers and employees.” The Bailout Plan Had Many CriticsTrump appeared to be for rescuing Spirit, last week telling reporters in the Oval Office “I think we’d just buy it.” But the chiefs of legacy airlines and several Republican legislators criticized the plan. “What we don’t want to do is put good money after bad,” Duffy told Reuters. “There’s been a lot of money thrown at Spirit, and they haven’t found their way into profitability.” A conservative political advocacy group founded by former Vice President Mike Pence issued a policy paper urging against a rescue plan, writing that “bailing out Spirit creates the expectation that American taxpayers, at the whim of politicians, will bail out other struggling airlines.” Sen. Ted Cruz, R-Texas, called rescuing Spirit “an absolutely TERRIBLE idea,” adding, “the government doesn’t know a damn thing about running a failed budget airline.” Further ReadingTrump’s Airline Went Under 35 Years Ago—But He Could Rescue Others (Forbes)Trump Reportedly Nearing $500 Million Bailout For Spirit Airlines (Forbes)