Updated on: April 23, 2026 / 9:26 PM EDT / CBS/AP
President Trump said Thursday he is weighing a taxpayer-funded takeover of Spirit Airlines with the intent to resell the struggling budget carrier after oil prices fall.
The president confirmed interest in offering Spirit a financial lifeline after a lawyer told a U.S. Bankruptcy Court that the airline was in advanced talks with the U.S. government on a financing deal that could allow Spirit to emerge from Chapter 11 protection.
“They have some good aircraft and good assets, and when the prices of oil goes down, we’ll sell it for a profit,” Mr. Trump said at an unrelated Oval Office event. “I’d love to be able to save those jobs. I’d love to be able to save an airline. And we’re looking, if we could get it for the right price, I’d do it to save the jobs.”
Mr. Trump stoked speculation earlier in the week when he encouraged a buyer to rescue Spirit and suggested the federal government could help keep it afloat. The White House has sought to blame the airline’s troubles on the Biden administration, which in 2023 sued to block JetBlue Airways’ $3.8 billion bid for Spirit; a federal judge in Dallas had previously blocked the proposed merger on competition grounds.
The president said he had “a smart person” in mind who might run Spirit and that the carrier could return to solid financial footing. He also noted the value of Spirit’s airport slots — scheduled takeoff and landing times at constrained airports.
Spirit Airlines President & CEO Dave Davis thanked the president for his support in a statement, saying the company looked forward to working with the administration “on a solution that protects thousands of jobs, preserves and enhances competition and helps ensure Americans continue to have access to affordable fares.”
Spirit has reported losses for years and filed for Chapter 11 protection in November 2024 and again in August 2025. With higher jet fuel costs tied to the Iran war, creditors recently raised doubts about Spirit’s viability, increasing the risk the airline could sell assets and cease operations.
At a bankruptcy hearing in New York, Marshall Huebner, a lawyer for Spirit, said government financing would make reorganization possible and help the carrier be more competitive. He said details of a potential deal had been shared with the company’s three primary creditor groups. The size and terms of the financing were not disclosed publicly.
CBS News reported this week the Trump administration is in advanced discussions with Spirit about a bailout. Sources familiar with the talks said a financing package could include a loan of up to $500 million in exchange for warrants that would allow the federal government to take a potentially substantial ownership stake.
While the federal government has intervened broadly for the airline industry after events such as 9/11 and during the COVID-19 pandemic, propping up a single carrier would be an unusual move.
Spirit is based in Fort Lauderdale, Florida, and employs about 15,000 people, roughly 6,000 of whom are in Florida. Transportation Secretary Sean Duffy told CBS News the administration must decide whether it can make Spirit viable or would be “putting good money into a company that inevitably is gonna be liquidated.”
Several lawmakers from both parties opposed a bailout. GOP Sen. Ted Cruz called the idea a “terrible idea” on X, and Sen. Tom Cotton posted that if private creditors doubt Spirit can be profitable coming out of its second bankruptcy in under two years, the U.S. government likely cannot either.
The airline’s pilots union, however, expressed “strong support” for a rescue. Capt. Ryan P. Muller, chair of the Spirit Airlines ALPA Master Executive Council, said Spirit helps keep fares low when it enters a market and makes travel affordable for many Americans.
As of the end of last year, Spirit owned 48 aircraft and leased 83, all from the Airbus A320 family. The airline announced plans to reduce its fleet to 76–80 planes by the third quarter as part of restructuring. It also owned 18 spare engines and leased 16 more.
Spirit’s relatively young fleet has made it an attractive target, but prior buyout attempts by rivals including JetBlue and Frontier failed before and during its first bankruptcy.
Kris Van Cleave contributed to this report.