The Trump administration is considering a bailout for Spirit Airlines, which could be a loan worth as much as $500 million.
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 budget airline, known (and frequently mocked) for its bare-bones offerings, has been struggling after declaring its second bankruptcy in less than a year. Last week, CNBC reported that Spirit could be liquidated in less than a week, with skyrocketing fuel prices adding to the company’s woes. The airline never recovered from the Covid-19 pandemic, as wages and costs shot up.
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.
On Tuesday, President Trump lamented the airline’s woes, floating a bailout in an interview with CNBC.
“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.
Trump: "I'd love somebody to buy Spirit Airlines. Maybe the federal government should help that one out. I told my people." pic.twitter.com/YS1GAMPeQ3
— Aaron Rupar (@atrupar) April 21, 2026But 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.
“What we don’t want to do is put good money after bad, and there’s been a lot of money thrown at Spirit, and they haven’t found their way into profitability,” Duffy told Reuters. “And so would we just forestall the inevitable and then own that?”
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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