The Trump administration is in advanced talks for a $500 million rescue package to save Spirit Airlines from collapse, providing loans in exchange for government warrants that could yield a significant ownership stake. This intervention aims to protect 14,000 jobs at the struggling ultra-low-cost carrier.
Reports indicate the deal remains unfinalized but is progressing, with the U.S. government potentially owning up to 90% of Spirit post-restructuring if the airline recovers. President Trump voiced support on CNBC’s Squawk Box Tuesday, stating he wants someone to buy Spirit and suggesting federal help for the 14,000 jobs at risk.
Spirit, facing liquidation risks after its JetBlue merger collapsed under Biden-era antitrust scrutiny, had sought emergency aid offering equity in return. The Trump team blames prior administration policies for exacerbating the carrier’s woes amid industry headwinds like Iran’s fuel shock.
This move underscores growing federal involvement in aviation, monitoring the sector’s health per White House statements. For Spirit, the package could enable bankruptcy exit and operational continuity, stabilizing routes and capacity in a competitive low-cost market.