Trump Administration Looks To Rescue Spirit Airlines, U.S. Could Take 90% Stake

The Trump administration is in talks to rescue Spirit Airlines.

As WLT Report previously covered, Spirit Airlines, known for its cheap flights and underwhelming hospitality, is in a major financial crisis.

The airline is facing liquidation by its creditors and has sought an emergency bailout from the White House.

Currently, Spirit is in talks with the White House to secure a bailout that would give the U.S. a 90% stake in the struggling airline.

CNBC reported more on the bailout:

The Trump administration is in advanced talks for a financing package for Spirit Airlines as the carrier is facing the risk of a liquidation, according to a person familiar with the matter.

The iconic discounter Spirit has been challenged for years by rising costs, changing consumer tastes, an engine recall and a court-blocked plan to be acquired by JetBlue Airways
two years ago.

“Spirit Airlines would be on a much firmer financial footing had the Biden administration not recklessly blocked the airline’s merger with JetBlue,” White House spokesman Kush Desai said in a statement to CNBC. “The Trump administration continues to monitor the situation and overall health of the U.S. aviation industry that millions of Americans rely on every day for essential travel and their livelihoods.”

Spirit had been facing a potentially imminent liquidation, people familiar with the matter told CNBC last week, speaking on the condition of anonymity to discuss matters that had not yet been made public. The Dania Beach, Florida-based carrier in August filed for its second Chapter 11 bankruptcy in less than a year, after it struggled to increase revenue to cover rising costs.

President Donald Trump hinted at potential government aid on Tuesday, telling CNBC’s “Squawk Box,” “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.”

SCOOP: The Trump administration and Spirit Airlines are nearing a deal where the U.S. government would put up to $500 million into Spirit Airlines stock warrants to try to save the company, leading to a potential significant stake in the company.

Team effort w/ @alyrose and…

— Brian Schwartz (@schwartzbWSJ) April 22, 2026

Bloomberg reported on the numbers:

The Trump administration is nearing a rescue package for Spirit Airlines that could give the US government the option to own as much as 90% of the carrier once it emerges from bankruptcy, according to people familiar with the matter.

The agreement, which has not yet been finalized, would offer as much as $500 million in financing in exchange for warrants to purchase up to 90% of the new entity, said the people, who spoke on condition of anonymity to describe the deal before it is announced.

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The talks are still fluid and an agreement might still not be reached. It’s also unclear what stake the US might ultimately end up with.

No wonder why the company is going belly up:

🚨 There’s a Time & Place for Everything—Work Isn’t One of Them! 🚨

Is this why the airline is having so many issues? Two Spirit Airlines workers get into a heated confrontation—right on the job.

💥 Professionalism out the window.

Is this part of a bigger problem?

Thoughts?… pic.twitter.com/Kh2b26ld6M

— Tony Lane 🇺🇸 (@TonyLaneNV) February 21, 2025