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Trump Administration Nearing Rescue Deal for Spirit Airlines: Report
The proposed rescue would give the government warrants for a potential stake as Spirit faces liquidation risk and rising fuel costs, sources said.
- On Wednesday, the Trump administration neared a deal to lend Spirit Airlines up to $500 million in exchange for equity warrants, aiming to prevent liquidation for the bankrupt carrier.
- Following its August bankruptcy filing, Spirit struggled as mid-April jet fuel prices reached around $4.24 per gallon, roughly double its $2.24 projection for 2026.
- White House spokesperson Kush Desai claimed Spirit would have a "much firmer financial footing" without the Biden administration's blocked JetBlue merger. President Donald Trump said, "I'd love somebody to buy Spirit."
- Shares of low-budget carriers Frontier, Allegiant, and Southwest dropped on Wednesday following reports of the rescue deal. Federal intervention would grant the government warrants, mirroring precedents like post-2001 airline bailouts.
- United Airlines CEO Scott Kirby called Spirit's business model "fundamentally flawed," expressing doubt about the carrier's long-term viability. Direct federal intervention in a bankrupt firm remains an unusually specific strategy.
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Spirit Airlines nears deal to be rescued after Trump urges someone to buy bankrupt carrier
The Trump administration has neared a deal to rescue embattled low-cost carrier Spirit Airlines, the Wall Street Journal reported Wednesday, citing people familiar with the matter.
·New York, United States
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Coverage Details
Total News Sources16
Leaning Left3Leaning Right3Center7Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
L 23%
C 54%
R 23%
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