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NYT, WSJ: Spirit Airlines Prepares To Shut Down; Trump Noncommittal On Bailout As Spirit Airlines Reportedly Nears Shutdown Amid Soaring Fuel Prices; Trump "Not Satisfied" With New Iranian Proposal To End War; Millions March In Worldwide May Day Protests; Trump: Spirit Bailout Decision Will Be "Today Or Tomorrow." Aired 3- 3:30p ET

Aired May 01, 2026 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

JESSICA DEAN, CNN HOST: It airs Sunday at 8 p.m. Eastern Pacific right here on CNN. You can also watch us on the CNN app.

A new hour of CNN NEWS CENTRAL starts right now.

BORIS SANCHEZ, CNN HOST: Spirit may be out of lifelines. New reports say the beleaguered airline is on the verge of shutting down. We'll explain what that could mean ahead of the busy summer travel season.

Plus, as a ceasefire hangs in the balance, President Trump says he's not satisfied with Iran's latest proposal to end the war. See what he said about potential consequences if a deal isn't soon reached.

And impact at the pump, gas prices are up nearly $0.10 in a single day. Ahead, we're going to look at how much longer this could last as we follow these major developing stories and many more all coming in right here to CNN NEWS CENTRAL.

President Trump's plan to save budget carrier Spirit Airlines may have run out of runway. The New York Times and Wall Street Journal both say the airline is preparing to shut down. Spirit had asked for a $500 million federal bailout as fuel costs soar because of the war with Iran. CNN's Betsy Klein is live in The Villages, Florida where President Trump is about to attend an event.

So, Betsy, what is the President saying about all of this?

BETSY KLEIN, CNN SENIOR WHITE HOUSE REPORTER: Right. Well, Boris, Spirit Airlines is facing bankruptcy. That has only been exacerbated by the rising cost of fuel during this conflict with Iran. President Trump, who himself bought an airline back in the 1980s, is non- committal but suggests that there could be a deal potentially as soon as today or tomorrow to save the embattled airline. Listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: (INAUDIBLE) against bailing out Spirit Airlines?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, I guess we're looking at it. If we could do it, we'd do it, but only if it's a good deal. UNIDENTIFIED FEMALE: (INAUDIBLE) that they were due to shut down this

weekend because they haven't gotten a deal.

TRUMP: Well, we're looking at it, but if we can't make a good deal, no institution has been able to do it. I said I'd like to save the jobs, but we'll have an announcement sometime today. We gave them ...

(CROSSTALK)

TRUMP: ... we gave them a final proposal.

(END VIDEO CLIP)

KLEIN: Now, this proposal would effectively give the U.S. government control of the airline and eliminate the shareholders. And it's worth noting that Spirit Airlines has about 14,000 employees. Those jobs now at stake, Boris and Jessica.

SANCHEZ: And Betsy, we also learned today that Iran sent a new peace proposal to Pakistani mediators in an attempt to end the war with the U.S. President Trump ...

KLEIN: That's right.

SANCHEZ: ... yes, President Trump says it's -- it's not up to par.

KLEIN: That's right. The President says he does not see enough movement at this point to send a delegation to Pakistan to continue those negotiations and warns that there could be a major military escalation. He is not happy with this latest proposal and questioning whether they can even resolve this diplomatically. Listen.

(BEGIN VIDEO CLIP)

TRUMP: They've made strides, but I'm not sure if they ever get there.

(CROSSTALK)

TRUMP: There's tremendous discord, there's tremendous -- they're having a tremendous problem getting along with each other in Iran. The leadership is very disjointed. It's got two to three groups, maybe four, and it's a very disjointed leadership. And with that being said, they all want to make a deal, but they're all messed up.

(END VIDEO CLIP)

KLEIN: Now, the U.S. blockade on the Strait of Hormuz is continuing to have a significant impact on gas prices up $0.33 on average. Just this week, the national average now $4.39, according to AAA. And here in Lake County, it's just under that at $4.31, really testing the patience of the American people, Boris and Jessica.

SANCHEZ: So, Betsy, what should we anticipate from the event there at The Villages starting in a short while?

KLEIN: That's right. President Trump coming here to this sprawling retirement community to refocus his message on the economy with a pitch aimed at senior citizens. You can see the signage behind me says a golden age for your golden years. He's going to highlight that no tax on Social Security provision of his One, Big, Beautiful Bill. Of course, we should note that that bill actually does not eliminate taxes on Social Security. However, it does give seniors a boost to their standard deductions for the next three years or so.

But all of this is part of a broader effort by this White House to get President Trump back on the road to focus on that affordability message, even as he has been stuck in Washington dealing with crises abroad, Boris.

SANCHEZ: Yes. Betsy Klein live for us in Florida. Thank you so much. Jessica.

DEAN: And joining us now to talk more about these developments is Elise Labott.

[15:05:01]

She is the host of Cosmopolitics on Substack and has really been invested in reporting on this for many years. So, you're the perfect person to talk to.

ELISE LABOTT, HOST, "COSMOPOLITICS" ON SUBSTACK: Good to see you (INAUDIBLE) ...

DEAN: It's good to see you.

We just heard from the President there. I just want to start first with this where he's -- he was asked about a deal and he said, I'm not sure if they're ever going to get there. Where does that leave us now?

LABOTT: Well, I mean, right now it's a game of chicken, right?

DEAN: Yes.

LABOTT: Both sides are kind of at a stalemate. There's two blockades. The U.S. is having this blockade against Iranian oil, and that is going to take effect eventually. You know, there are estimates of how long that is going to take. But Iran is hurting right now, and it certainly doesn't want the hardcore war and fighting to resume. And there's a lot of economic pain here at home.

So, the Strait of Hormuz is also a pain point. And so, both sides don't want to capitulate because they see weakness, but both sides do want the war to end. So, I mean, I think it's, you know, most experts and most people that follow Iran say that it'll probably end in some kind of negotiation or in a definite ceasefire, which doesn't really help either side.

DEAN: And -- and so -- okay, first of all, you talk about this game of chicken, which is ...

LABOTT: Right.

DEAN: ... that each side kind of thinks that -- that the others are going to break, right?

LABOTT: (INAUDIBLE) going to blink -- yes, that's going to blink first.

DEAN: And -- and we just don't know ...

LABOTT: Right.

DEAN: ... who's going to do that. And until then, it's kind of like this just circle that keeps going, right?

LABOTT: Well, look, President Trump did say, I'm the negotiator, I'm the dealmaker, right? Negotiating is making the other side feel as if you got something as well. And I -- I think there's not really an understanding of the Iranian kind of mentality here that what do the Iranians want. No one really knows what they want.

The Iranians have the Strait of Hormuz, but what are they going to do with it, right? Other than just hold the international community hostage. It's kind of like stealing that painting from the Louvre. You have it. It's valuable, but you can't really sell it and you can't really do anything with it. You're just stuck with it.

So, Iran does want it to end. What can the President give the Iranians to make this end? The Iranians really want to negotiate the Strait of Hormuz first as a kind of act of goodwill and then move to the nuclear program. And I think if there's going to be some kind of negotiation, that might be what's going to happen.

And my understanding is this new Iranian proposal doesn't really resolve that, but it moves closer to say maybe we can have a timeline for those nuclear negotiations.

DEAN: And you named the two issues that -- that -- that are really, really sticky right now ...

LABOTT: Right.

DEAN: ... which is the Strait of Hormuz ...

LABOTT: Right.

DEAN: ... and the nuclear program.

LABOTT: Right.

DEAN: What are -- do you estimate the chances are of us getting a deal, the United States getting a deal on both of those things?

LABOTT: Well, I think the Iranians will be more willing to make a deal on the Strait of Hormuz. They always have that card though. What's really ironic is that Supreme Leader Khamenei, the late Supreme Leader, the -- the Iran -- the Strait of Hormuz didn't suddenly appear on February 28th. I mean, it's always been there.

DEAN: Right. Right. LABOTT: But the Iranians didn't use that card. Now, they have this card to always use. Getting rid of the Iranian uranium and the nuclear program is going to be a much trickier prospect. That's going to take a lot longer, Jessica. And that requires patience, diplomacy, technical negotiations. You remember that deal with the Obama administration that President Trump pulled out of, that took two and a half years to move into effect.

So, I think the administration, if they're going to have a negotiation on the nuclear front, and this is not going to -- they're not going to squeeze Iran into giving it up. It's going to have to ...

DEAN: Right. It's not going to work that way.

LABOTT: It's not going to work that way. There has to be some negotiation and there has to be the kind of painstaking negotiations that this administration isn't known for.

DEAN: Yes. I mean, to your point, it took two and a half years last time to kind of start to finish.

LABOTT: Exactly.

DEAN: Moscow has proposed taking control of Iran's stockpile of enriched uranium. The President has talked about that as well. You mentioned the Obama era deal. How similar is that? Are there pieces that ...

LABOTT: You know, that's something that was floating around for years in terms of that stockpile, that the Russians would take it. Now, in theory, that sounds like a great idea. You know, have the Russians take it. In actuality, what does that do to the President's other foreign policy objectives, like ending the war in Ukraine? We never talk about that anymore.

DEAN: Right.

LABOTT: But, you know, that particular threat is also a threat to Europe. Russia is also a threat to the United States in -- in some way, even if the President doesn't see it that way. So, it's kind of like a chessboard and you have to see, like, how all those pieces fit in place.

But yes, the idea of Iran handing over that enriched uranium to a third country, I think, would be a lot more desirable than just giving it up to the United States. Remember what happened with Libya.

DEAN: Right.

LABOTT: They gave up all of their nuclear stockpile to the United States and then Gaddafi fell.

[15:10:02]

I don't think the Iranians -- that's not ...

DEAN: Look to that and say ...

LABOTT: ... no, they don't look to that and say, that's a success.

DEAN: Yes.

LABOTT: So, I don't see them just handing it over. But can there be, again, a formula that could allow the Iranians to not feel as if they completely capitulated to the United States, which if you know anything about the Iranians, great Satan, all these decades, that's not something they're going to do. But if President Trump wants to really put on his negotiator hat and find something that the Iranians can say, yes, that's a deal we can live with, there could be an opportunity here. But it's -- it's going to take a long time.

DEAN: Time, time. All right, Elise, great to see you.

LABOTT: Yes, great to see you, too.

DEAN: Thank you so much.

Still to come here on this May Day, protesters taking to the streets across the country in honor of International Workers' Day, and we're live at one of the many events.

Plus, gas prices are surging again. They're now at their highest level in nearly four years. They're having a big impact on farmers as well as drivers.

And later, a giant sea lion is making a rare appearance at a popular pier in San Francisco and becoming an internet sensation. That and much more coming up here on CNN NEWS CENTRAL.

(COMMERCIAL BREAK)

[15:15:00]

SANCHEZ: Happening right now, protesters turning out for May Day rallies across the globe. Millions are marching in streets and cities like Paris, Los Angeles, Raleigh, North Carolina. They are demanding better working conditions and living conditions, greater equality and world peace. CNN Law Enforcement Correspondent Whitney Wild is watching the protests in Chicago.

Whitney, how are the crowds there?

WHITNEY WILD, CNN LAW ENFORCEMENT CORRESPONDENT: Well, there are thousands of people here at Union Park, really in the heart of Chicago. And we spoke with several people today who said that it is not a singular issue that is driving them out today. It is a list of grievances they have with how the administration is running this country.

Most of the people we spoke with, you know, really had a list of things that they were frustrated by. Some people said that they were frustrated that, you know, there are people who are hungry in the United States. And yet there are billions of dollars going to the war in Iran. Other international entanglements, as one man called it. I mean, he was extremely frustrated.

What you see when you come out here is a list of signs that really reflect that. I mean, we're seeing signs that are advocating against ICE, that are saying abolish ICE. Signs that are very clearly anti- Trump. We are also seeing signs for a list of issues, including LGBTQ issues. I'll step out of the frame here, Boris, so that you can take a look here. Because right in front of me or right behind me, rather, I -- I think is a good example of the types of signs that we're seeing.

As you pointed out, this is traditionally a day to raise awareness and to protest for better working conditions, better wages. The people we spoke with said that there is no time that is more important now. Given the shift in the economy, given the increase in gas prices, it is more important than ever to come out and make their voices heard, they said. Here's more from the folks we spoke with on the ground.

(BEGIN VIDEO CLIP)

GEOFFREY GRESK, OAK PARK, IL RESIDENT: All these issues that seem unrelated, Iran, and Gaza, and ICE raids and all those, I think actually are related. They're about concentrating power and wealth in the hands of a few people. And that's not good for any of us. So, I'm here to protest that.

STEPHANIE CONROY, STREAMWOOD, IL RESIDENT: I've got grandchildren and great-grandchildren, and I see their way of life being stolen. America's being fleeced, and I don't understand why people aren't worried about it.

COLAN FRY, CHICAGO RESIDENT: What most people are coming out is that, you know, the country has kind of left a lot of us behind. And as a health care worker, I see that in my patients every day and it's really distressing. There's no safety net. There are people that are being brutalized by their own country. And it -- it just needs to stop.

(END VIDEO CLIP)

WILD: Boris, as you pointed out, these protests are happening all around the world. But it is Chicago where these protests have special meaning. A hundred and forty years ago today was the Haymarket Affair. That was the first mass protest for an eight-hour wage -- eight-hour workday, rather, and better wages. Thousands of people came out into the city of Chicago. It resulted in a lot of bloodshed. There were several people who died. That Haymarket Affair is not far from the memories of people here in Chicago, especially today on the 140th anniversary of a moment that really shifted this movement for workers' rights and civil rights, Boris.

SANCHEZ: Whitney Wild live for us in Chicago, thank you so much.

Ahead, President Trump says an announcement on whether or not to bail out Spirit Airlines could come as soon as today. Without one, the airline's future looks bleak. We're going to talk about what that means for air travelers when we come back.

(COMMERCIAL BREAK)

[15:23:49]

DEAN: A short time ago, President Trump was non-committal on whether the government will ultimately bail out Spirit Airlines. He said an announcement will be made in his words today or tomorrow. The low- budget airline said to be on the brink of closing with the Wall Street Journal reporting Spirit could cease operations as early as this weekend. Let's talk about this now with Becky Blaine, the managing editor of The Point Guy.

Becky, great to have you here with us. I think the immediate question for people out there who fly Spirit Airlines is, if I was supposed to fly on them, what do I do? What does this mean?

BECKY BLAINE, MANAGING EDITOR, THE POINTS GUY: It means that they could run out of cash within days and shut down with little to no notice as soon as this weekend. And so, if you have a ticket booked on Spirit, I would be rebooking on another airline if you really have to travel on the days that you have to travel.

DEAN: You would just go ahead and advise, cut your losses, rebook your ticket.

BLAINE: I think the one thing that we've seen is that if you book with a credit card, the bankruptcy of an airline is specifically not covered under the travel insurance policy by your credit card. If you have additional travel insurance, you can check that. It might be covered. But it's very unlikely that you might have recourse, especially if you used a debit card or something like that.

[15:25:05]

So, you know, other airlines have come out, American Airlines, just came out this afternoon and said that they have implemented a fair cap on routes that they fly with Spirit to help passengers look at rebooking.

DEAN: Oh, that's interesting. And good information for people out there who may be flying soon. What about Spirit airline employees? How -- you know, obviously these -- these are thousands of people that would likely lose their jobs.

BLAINE: Yes, and there's over -- over 7,000 employees and their major hub being Orlando. So, there's pilots and flight attendants and airline workers that are all concentrated in that central Florida area. And that's the one thing the President just came out this afternoon saying too that, you know, kind of backtracking saying they haven't really made a decision yet, but he does want to save those jobs. So, I think it still remains to be seen if a deal could be done with the federal government, which would still be highly unlikely to have an individual airline bailed out by the government versus something that was industry-wide aid package like we saw post 9/11 or during the COVID pandemic.

DEAN: Yes, and we were talking with our business editor Richard Quest in one of the other hours and he was saying essentially if you're an airline and it lets -- and it somehow gets out that you might be going under, people will stop booking and then that just escalates everything that they really try to keep that quite quiet. And obviously there have been these -- these leaks now and there's talks about a deal maybe not a deal. Is that how you see it as well?

BLAINE: Yes, I think it's been very publicized that, you know, they've come out of two bankruptcies over the last two years. They've got high operational costs. The -- the war has not helped that with now the high jet fuel prices that's just piling on top of the, you know, millions of dollars in debt that they already have that they're carrying operationally. So, it's just, you know, increasing the pressure overall on the airline to try and stay afloat at this point.

DEAN: And what does this mean do you think more broadly for the low- cost carriers just as a group?

BLAINE: Yes, I think unfortunately it would be, you know, limiting competition. I mean, they are the largest ultra-low-cost carrier in the country and they, you know, carried over half a million passengers per month and it really would, I think, disrupt pricing. You know, we're looking at air fares on these affected routes could potentially rise by about 14 percent which breaks down to about a $19 increase based on historical patterns. But the loss of that low-cost capacity would disproportionately impact price-sensitive travelers in this economy.

DEAN: Yes, they are the ones that are really would be feeling it. I'm curious what your sense is of how other airlines and the airline industry views a potential bailout. If -- if that's seen as something they have a strong opinion on or not.

BLAINE: Yes, we've reached out to a few airlines for comment and haven't heard back yet specifically on the -- that portion of the issue. But I would say with American Airlines already coming out and implementing that fare cap, that is showing that they are, you know, signaling to the consumers that they do want to pick up this business from Spirit Airlines and that they're not going to let prices drive up specifically on those -- those routes that are serviced by Spirit. So, that can be some consolation this afternoon and I think so much still remains to be seen.

DEAN: Certainly, there's no doubt about that. We will see what the weekend brings. Becky Blaine, thanks so much. We appreciate it.

BLAINE: Thank you.

DEAN: And still to come, gas prices have risen another $0.09 in the last 24 hours. It's the biggest one-day jump in the last six weeks and Americans are frustrated. That's next.

(COMMERCIAL BREAK)