President Trump confirmed Thursday that he is seriously considering a taxpayer-funded rescue of Spirit Airlines, with plans to resell the struggling budget carrier once energy costs decline and the airline returns to profitability.
The announcement comes after Spirit Airlines' lawyer disclosed in U.S. Bankruptcy Court that the carrier is in advanced negotiations with the federal government on a substantial financing package to help it emerge from Chapter 11 bankruptcy 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 during an Oval Office event Thursday. "I'd love to be able to save those jobs. I'd love to be able to save an airline."
According to sources familiar with the negotiations, the proposed financing package could include a government loan of up to $500 million in exchange for warrants that would grant federal authorities a potentially significant ownership stake in the carrier.
Trump suggested that identifying the right price would be key to moving forward with the deal. "And we're looking, if we could get it for the right price, I'd do it to save the jobs," the president stated.
A Carrier in Crisis
Spirit Airlines has endured years of mounting losses and financial instability. The carrier filed for Chapter 11 bankruptcy protection in November 2024, followed by a second filing in August 2025. The spike in jet fuel costs driven by regional conflicts has compounded the airline's struggles, prompting creditors to express serious concerns about the company's long-term viability earlier this month.
The airline, recognized for its distinctive bright yellow aircraft, now faces the possibility of forced asset liquidation and operational shutdown if a rescue deal cannot be finalized.
Marshall Huebner, a lawyer representing Spirit at Davis Polk, told the U.S. Bankruptcy Court in New York that government financing would enable the airline to reorganize successfully and enhance its competitive position in the market. Details of the potential arrangement have been shared with the airline's three primary creditor groups.
The White House Perspective
The Trump administration has attempted to pin blame for Spirit's collapse on the previous Biden administration. In 2023, the Biden Justice Department sued to block a proposed $3.8 billion acquisition of Spirit by JetBlue Airways. A federal judge in Dallas ultimately blocked the merger, ruling that combining the carriers would increase ticket prices for passengers and reduce competition.
Trump indicated he has identified "a smart person" who could potentially oversee Spirit's operations and return the airline to financial stability. He also highlighted the value of the airline's airport slots—scheduled times allocated for takeoff and landing when demand exceeds available capacity.
"And they have some very good slots too, which are pretty valuable," Trump added.
Spirit's Statement
Spirit Airlines President and Chief Executive Officer Dave Davis responded positively to Trump's comments. "We are grateful for President Trump's support and look forward to continuing to work with him and his Administration on a solution that protects thousands of jobs, preserves and enhances competition and helps ensure Americans continue to have access to affordable fares," Davis said in a statement.
This story is based on reporting from CBS News and the Associated Press.