Trump weighs Spirit Airlines takeover, eyes resale after oil price drop report says
The president confirmed his continued interest in offering Spirit a financial lifeline after a lawyer told the 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.
Speaking at an unrelated Oval Office event, Trump said, “They’ve got some good planes and some good assets, and when oil prices come down, we’re going to sell that for a profit.” “I would love to be able to save these jobs. I would love to be able to save an airline.”
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Trump fueled speculation of a deal to save Spirit on Tuesday by encouraging a buyer to bail out the airline and suggesting the federal government could help keep the company afloat.
The White House has sought to blame Spirit’s plight on the Biden administration, which is suing to block JetBlue Airways from acquiring Spirit for $3.8 billion in 2023. A little more than a year before Trump replaced Joe Biden as president, a federal judge in Dallas blocked the proposed Spirit-JetBlue merger, saying it would increase passengers’ airfares.
Trump said he has in mind a “smart person” who could potentially run Spirit and believes the airline can get back on solid financial footing. “There are also some very good slots, which are also quite valuable,” the president added, referring to the scheduled times reserved for airlines to take off or land at airports when demand exceeds available capacity.
The soul has been struggling with loss 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 expressed doubts about Spirit’s continued viability earlier this month, raising the possibility that the airline, known for its bright yellow planes, will be forced to sell assets and cease operations.
Before Trump’s comments about the government’s outright purchase of the airline, Davis Polk attorney Marshall Huebner, who represents Spirit, said at a U.S. Bankruptcy Court hearing in New York that government financing would enable restructuring and help Spirit become more competitive.
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Details of a potential deal have also been shared with the company’s three main creditor groups, Huebner said.
It was not immediately clear how a federal buyout would differ from the terms discussed. The size and conditions of the financial aid were not shared with the public. The Wall Street Journal and Bloomberg, citing unnamed sources, reported an amount of $500 million that would give the government the option to buy a large stake in the airline headquartered in Florida.
Earlier this week Transport Minister Sean Duffy expressed doubts about the government intervening to keep Spirit alive. In a CBS interview that aired Tuesday night, Duffy questioned whether a deal would set a broader precedent.
“So who else comes to my door?” he said, referring to other airlines potentially seeking government aid. “The question will be: Can we do anything to save Spirit and make it viable, or are we going to put good money into a company that will inevitably be liquidated?”
Many lawmakers, both Republican and Democrat, also opposed the bailout idea. Texas Sen. Ted Cruz wrote on X on Wednesday that a deal for Spirit would be a “terrible idea.”
Tom Cotton, a senator from Arkansas, wrote in “Not the best use of taxpayer dollars.”
On the other hand, the union representing the airline’s pilots gave “strong support” to the rescue agreement.
“Spirit is the reason so many Americans are able to have the opportunity to visit family, travel for business or go on vacation,” said Capt. Ryan P. Muller, Chairman of the Spirit Airlines ALPA Master Board of Directors. “When Spirit enters a market, prices fall.”
Spirit’s relatively young fleet made it an attractive acquisition target. But previous acquisition attempts by budget rivals like JetBlue and Frontier failed before and during Spirit’s first bankruptcy.
