President Trump confirmed the U.S. government is weighing a taxpayer-funded takeover of Spirit Airlines for the right price, aiming to resell it profitably after oil prices fall. The move follows advanced talks on a $500 million bailout package that could give the government warrants for up to 90% ownership, potentially saving 14,000 jobs.
Spirit’s lead counsel, Marshall Huebner, warned a New York bankruptcy court on April 23, 2026, that cash to fund operations won’t last beyond next week without new financing or access to $240 million in restricted funds. The carrier, unprofitable since 2019 and projecting $200 million losses this year, filed for Chapter 11 amid surging jet fuel costs from the Iran conflict.
Trump highlighted Spirit’s valuable aircraft and assets during an Oval Office event, emphasizing job preservation ahead of summer travel. The deal would prevent Spirit from becoming the first major U.S. airline in 25 years to halt operations due to finances, maintaining low-cost competitive pressure on rivals.
Creditors have withheld further advances, forcing reliance on government intervention. Lawmakers from both parties criticize the bailout, but the administration defends it as essential for operational continuity.