Spirit Airlines lawyer says cash 'not going to last for very much longer,' but government rescue on the table

spirit airlines' cash is running out fast. a lawyer for the budget carrier told a bankruptcy court hearing thursday that the company needs new financing or access to roughly $240 million in restricted cash by the end of next week to keep operating. marshall huebner of davis polk, spirit's lawyer, said the airline is in "advanced" talks with the trump administration for a government rescue. people familiar with the matter told cnbc the deal under discussion is a $500 million loan that could give the government a 90% stake in the florida-based carrier. huebner didn't detail the plan in court but said it would create a "fierce competitor" and hinted at potential consolidation in the value carrier space. spirit had expected to exit bankruptcy by midyear, but a surge in fuel prices after the u.s. and israel attacked iran complicated those plans. the airline has been struggling for years — an engine recall, a blocked jetblue acquisition, shifting customer preferences, and rising costs all piled up. "spirit now definitively stands at the crossroads," huebner said.