President Donald Trump said on April 23 that a taxpayer-funded takeover of Spirit Airlines could be an option, with the intention of reselling it when oil prices fall.
The Florida-based airline is undergoing restructuring after filing for bankruptcy protection in August 2025.
Trump, speaking to reporters in the Oval Office, said he was interested in the U.S. government bailing out Spirit, or buying it outright.
“We’d be getting it debt-free. They have some good aircraft and good assets, and when the prices of oil goes down, we’ll sell it for a profit,” Trump said.
“I’d love to be able to save those jobs. I’d love to be able to save an airline,” Trump said, adding that more airlines improves competition in the market.
Spirit said in March that it had been working to sell some planes and scale back operations to focus on its “strongest routes and markets,” including Orlando and Fort Lauderdale, Florida; Detroit, Michigan; and the New York metropolitan area.
Marshall Huebner, a lawyer with Davis Polk who is representing Spirit, told a U.S. bankruptcy court hearing in New York this week that government financing would make Spirit more competitive.
Creditors Notified of Deal
Huebner said details of a potential deal had been shared with all three of the company’s primary creditor groups.
The airline that became Spirit was launched in the 1980s, but rebranded in 1992.
“It all started with our launch as Charter One, flying Guests from Detroit to Atlantic City, Las Vegas, and the Bahamas,” the company says on its website. “When we rebranded as Spirit Airlines, we doubled down on our mission: bringing more guests to more places for more fun.”
Ultra-low-cost airlines have been under pressure for years as they traditionally attract budget-conscious travelers with low base fares, but the rise in oil prices is eroding margins and increasing losses.
Earlier this week, for example, German airline Lufthansa announced that 20,000 short-haul flights would be canceled this summer because of the ongoing fuel crisis sparked by the Iran war and subsequent blockade of the Strait of Hormuz, a vital route for global oil shipments.
On April 21, Trump urged for someone to buy Spirit and said federal assistance may be available.
“I’d love somebody to buy Spirit—it’s 14,000 jobs,“ he said. ”Maybe the federal government should help that one out.”
In 2024, the Biden administration, citing antitrust laws, prevented JetBlue Airways from buying Spirit for $3.8 billion.
Transportation Secretary Sean Duffy told CBS News this week he had concerns about a Spirit Airlines bailout.
“The question will be does the federal government step in and bail out an airline that for a very long time hasn’t been run well,” Duffy said.
He said he was unsure whether Spirit could be saved and “made viable” and was concerned that taxpayers’ money could end up in a company that would eventually be liquidated.
But Trump said he had “a smart person” in mind who could potentially run Spirit and get it back on solid a financial footing.
Hellbound and Down 