President Donald Trump said Tuesday the federal government could help struggling Spirit Airlines as the low-cost carrier faces liquidation.
Trump told CNBC’s “Squawk Box”: “I don’t mind mergers. I think I would like someone to buy Spirit, for example. You know, Spirit is in trouble. … Maybe the federal government should help that one out.”“
Spirit has requested help from the Trump administration in recent days, according to people familiar with the matter who were not authorized to speak to the media about the discussions. The request was first reported by aviation news publication The Air Current.
The airline is struggling to find its footing after filing for bankruptcy protection in August for the second time in less than a year.
Spirit is expected to emerge from bankruptcy in mid-2026, after selling more planes and focusing its attention on several key cities. But soaring fuel prices since the US and Israel attacked Iran in February have become an additional challenge. Fuel is the largest airline expense after labor.
Jet fuel prices have nearly doubled this year since the attacks on Iran, with a gallon costing an average of $3.87 on Monday in Los Angeles, Chicago, Houston and New York, according to Argus data published by Airlines for America. This represents an increase of approximately 55% from the start of the war on February 28.
Transportation Secretary Sean Duffy is expected to meet later Tuesday with several low-cost carriers to discuss the impact of the fuel hike on their businesses, and the participants are expected to ask for possible tax relief, people familiar with the matter said, requesting anonymity to speak about matters that had not yet been made public.
It was not immediately clear whether the administration would provide a lifeline to the Florida-based carrier. The US government gave billions of dollars to the airline industry during the Covid-19 pandemic, but that money went to many companies, not just one carrier.