The Wall Street Journal reported Wednesday that the proposed deal could give the federal government warrants for a large stake in the company, and that the Transportation Department and Commerce Department are part of the discussions. Nothing has been finalized yet.
The airline was also hurt as the domestic flight industry became oversaturated, and a 2023 engine recall for its Airbus planes only made things worse. A merger with JetBlue Airways was blocked in 2024, and the company lost $257 million between March 2025, when it exited its first bankruptcy, and the end of June that year. The company then filed for bankruptcy a second time.
“You know, Spirit’s in trouble, and I’d love somebody to buy Spirit. It’s 14,000 jobs, and maybe the federal government should help that one out. I told my people,” Trump said.
— Aaron Rupar (@atrupar) April 21, 2026
But why should American taxpayers bail out an airline? The last time the government intervened to help air carriers was after the Covid-19 pandemic; before that, it was following the 9/11 attacks. Both of those interventions were for companies across the industry, not one singular airline. On Tuesday, Transportation Secretary Sean Duffy expressed reservations about the proposed bailout.
Duffy seems to have been overruled in the past day, raising questions about the administration’s motive for seeking to save Spirit. Does Trump, one of his business allies, or even his fellow Republicans have a stake in keeping the south Florida–based company afloat?
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