Trump Weighs Government Takeover of Struggling Spirit Airlines

WASHINGTON — President Donald Trump announced Friday that his administration continues to evaluate a potential government-funded rescue of Spirit Airlines.

Speaking to reporters before departing the White House for Florida, Trump provided few specifics about the proposal but indicated an announcement could come within the next day or two.

“We’re looking at it. If we could do it, we’ll do it. But only if it’s a good deal,” Trump stated.

The president expressed interest in preserving employment at the budget carrier and revealed his administration has presented Spirit with “a final proposal.”

“We’re looking at Spirit and if we can help them, we will. But we have to come first,” he explained.

Trump drew comparisons to his administration’s previous arrangement that made the federal government a significant shareholder in Intel, the semiconductor company, though he noted this situation was “a different kind of a thing.”

The president initially suggested this taxpayer-funded acquisition concept the previous week, proposing the government could eventually sell the airline at a profit once fuel prices decline following the Iran conflict.

According to court proceedings, a Spirit representative informed a U.S. Bankruptcy Court seven days ago that the airline was engaged in serious negotiations with federal officials regarding a financing arrangement that could help the company emerge from Chapter 11 bankruptcy.

The potential rescue has garnered support from labor organizations representing Spirit’s cockpit crews and cabin staff, who contend that the low-cost airline’s failure would eliminate jobs and drive up ticket prices for consumers.

However, legislators from both major political parties have voiced opposition, expressing concern about using public funds and questioning whether federal intervention would essentially rescue a company with poor recovery prospects.

The airline known for its distinctive bright yellow aircraft has faced financial difficulties for an extended period. Spirit entered bankruptcy proceedings in November 2024 and filed again in August 2025.

As the Iran conflict continues to inflate jet fuel expenses across the aviation industry, Spirit’s creditors recently questioned the company’s operational viability, suggesting the airline might need to liquidate its assets and cease operations entirely.