Updated April 23, 2026 — President Donald Trump said he is considering a taxpayer-funded takeover of Spirit Airlines with the aim of selling the budget carrier later if oil prices fall. The president confirmed interest in a federal financing package after a lawyer for Spirit told a U.S. Bankruptcy Court the airline was in advanced talks with the government about a deal that could allow Spirit to emerge from Chapter 11.
Trump said Spirit has valuable aircraft and assets and that a temporary government intervention could preserve thousands of jobs until fuel costs ease and the carrier can be resold. He added that he has a potential leader in mind who could run the airline and return it to stability, and he highlighted the value of Spirit’s airport slots at congested airports.
Spirit Airlines President and CEO Dave Davis thanked the president for his support and said the company looks forward to working with the administration on a solution that protects jobs, preserves competition and maintains access to low fares.
Spirit, based in Fort Lauderdale, has struggled financially for years and has filed for Chapter 11 protection twice, in November 2024 and again in August 2025. Rising jet fuel costs tied to the war in Iran prompted creditors to question the carrier’s viability, increasing the risk that Spirit could be forced to sell assets or cease operations.
At a New York bankruptcy hearing, Spirit attorney Marshall Huebner told the court that government financing would make reorganization possible and help the airline compete. He said details of a potential package had been shared with the company’s primary creditor groups, but the specific size and terms have not been disclosed publicly.
CBS News and other outlets reported the administration is in advanced discussions with Spirit. Sources familiar with talks said a possible financing package could include a loan of up to $500 million in exchange for warrants that would give the federal government a potential ownership stake.
Federal intervention on behalf of the airline industry is not unprecedented: the government provided broad support after the 9/11 attacks and during the COVID-19 pandemic. But a targeted bailout of a single carrier would be unusual, and the proposal has drawn bipartisan skepticism.
Transportation Secretary Sean Duffy said officials must determine whether government aid could realistically make Spirit viable or would amount to throwing good money into a business likely to be liquidated. Several lawmakers opposed the idea, arguing that if private creditors doubt Spirit’s prospects, the government should be cautious. Others, including the Spirit pilots union, urged a rescue, saying the carrier helps keep fares low and travel affordable.
As of the end of last year, Spirit owned 48 aircraft and leased 83, all from the Airbus A320 family. The airline plans to shrink its fleet to about 76–80 planes by the third quarter as part of restructuring and reported ownership or leases for spare engines as well. Previous buyout attempts by rivals such as JetBlue and Frontier have failed before or during Spirit’s earlier bankruptcy proceedings.