Trump says ‘maybe’ government should help struggling Spirit Airlines
President Donald Trump said Tuesday that the federal government could help fight Spirit Airlines as the discount carrier faces the possibility of liquidation.
Trump told CNBC’s “Squawk Box”: “I don’t mind mergers. I think I would like someone to buy Spirit, as an example. You know, Spirit is in trouble. … Maybe the federal government should help with that.”“
According to sources familiar with the matter, Spirit has requested government assistance from the Trump administration in recent days. The request was first reported by aviation news publication Airflow.
The airline has been struggling to find its footing after filing for bankruptcy protection for the second time in less than a year in August.
Spirit is expected to emerge from bankruptcy in mid-2026 after selling more planes and narrowing its focus to a few key cities. But the rise in fuel prices since the US and Israel attacked Iran in February has become an additional challenge. Fuel is airlines’ biggest expense after labor.
According to Argus data published by Airlines for America, jet fuel prices have nearly doubled since the attacks on Iran this year; In Los Angeles, Chicago, Houston and New York, a gallon sells for an average of $3.87 on Monday. This is an increase of approximately 55% compared to before the war began on February 28.
Transport Secretary Sean Duffy will meet with several discount carriers later Tuesday to discuss the impact of higher fuel prices on their business, and participants are expected to seek potential tax relief, said people familiar with the matter, requesting anonymity to talk about matters that have not yet been publicly disclosed.
It was not immediately clear whether management would provide the Florida-based carrier with a lifeline. The US government gave billions of dollars to the airline industry during the Covid-19 pandemic, but this money went to many companies, not a single carrier.
