Trump considers a taxpayer takeover of Spirit Airlines and would aim to resell carrier
NEW YORK (AP) — President Donald Trump said Thursday that he was weighing a taxpayer-funded takeover of Spirit Airlines with the intent of reselling the struggling budget carrier after oil prices drop.
The president confirmed his continued 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 would 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,” Trump said, speaking 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.”
Trump stoked speculation of a deal to save Spirit on Tuesday when he encouraged a buyer to rescue the airline and suggested the federal government could help keep it afloat.
The White House has attempted to blame Spirit’s predicament on the Biden administration, which in 2023 sued to stop JetBlue Airways from buying Spirit for $3.8 billion. A little more than a year before Trump replaced Joe Biden as president, a federal judge in Dallas blocked a proposed Spirit-JetBlue merger, saying it would drive up airfares for passengers.
Trump said he had “a smart person” in mind who could potentially run Spirit and that he believed the airline could get back on solid financial footing.
“And they have some very good slots too, which are pretty valuable,” the president added, referring to scheduled times allocated for airlines to take off or land at airports when demand exceeds available capacity.
Spirit has struggled with losses for years. The airline filed for Chapter 11 protection in November 2024 and again in August 2025. With the Iran war driving up jet fuel costs for all airlines, creditors earlier this month expressed doubts about Spirit’s ongoing viability, raising the possibility the airline recognized for its bright yellow planes would be forced to sell its assets and cease operating.
Before Trump's comments about the government buying the airline outright, Marshall Huebner, a lawyer with Davis Polk who is representing Spirit, said during a U.S. Bankruptcy Court hearing in New York that government financing would make a reorganization possible and help Spirit be more competitive.
Details of a potential deal were shared with all three of the company’s primary creditor groups, Huebner said.
It was not immediately clear how a federal acquisition would differ from the terms that were under discussion. The size and terms of the financing aid were not shared publicly. The Wall Street Journal and Bloomberg, citing unnamed sources, both reported an amount of $500 million that would give the government an option to acquire a sizable stake in the airline, which has its headquarters in Florida.
Earlier this week, Transportation Secretary Sean Duffy voiced skepticism about the government stepping in to keep Spirit alive. In a CBS interview that aired Tuesday night, Duffy questioned whether a deal would set a broader precedent.
“Then who else comes to my door?” he said, referring to other airlines potentially requesting government aid. “The question will be, can we do anything to save Spirit and make it viable, or would we be putting good money into a company that inevitably is going to be liquidated?”
Several lawmakers, both Republican and Democrats, also balked at the idea of a bailout. Sen. Ted Cruz of Texas wrote on X on Wednesday that a deal for Spirit would be a “terrible idea.”
“If Spirit’s creditors or other potential investors don’t think they can run it profitably coming out of its second bankruptcy in under two years, I doubt the US Government can either,” Tom Cotton, a senator from Arkansas, posted on X. “Not the best use of taxpayer dollars.”
The union that represents the airline's pilots, on the other hand, voiced “strong support” for a rescue deal.
“Spirit is the reason so many Americans can afford to visit family, travel for work, or take a vacation,” said Capt. Ryan P. Muller, chair of the Spirit Airlines ALPA Master Executive Council. “When Spirit enters a market, fares go down.”
Spirit’s relatively young fleet has made it an attractive acquisition target. But previous buyout attempts from budget rivals like JetBlue and Frontier were unsuccessful both before and during Spirit’s first bankruptcy.
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Madhani reported from Washington. AP writers Josh Boak in Washington and Rio Yamat in Las Vegas contributed to this report.
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