Trump official says Spirit bailout talks are ‘ongoing’
Talks between the Trump administration, lenders, and other stakeholders over a possible federal rescue of Spirit Airlines are ongoing. National Economic Council Director Kevin Hassett said negotiations are focused on what a bailout could look like, including a reportedly proposed plan involving a $500 million loan in exchange for warrants tied to 90% of spirit’s equity.
Spirit’s condition has worsened over the past two years,including two bankruptcy filings from 2024 to 2025. A proposed merger with JetBlue was blocked in 2024 on antitrust grounds, and Spirit’s restructuring plan-aimed at exiting bankruptcy through a Chapter 11 process by summer-has reportedly met resistance from lenders who say it does not adequately reflect sustained high fuel costs. Spirit’s turnaround assumptions were further undermined by fuel price increases linked to the Iran war.
President Donald Trump has suggested a more direct government role, at times implying the federal government might buy Spirit or otherwise take ownership, arguing the airline has valuable assets and could be profitable if oil prices fall. With discussions still underway, Spirit’s future depends on whether the parties can reach an agreement and stabilize the airline.
A top Trump administration official said talks over a possible federal rescue of Spirit Airlines are “ongoing” on Thursday, as the struggling budget carrier faces mounting financial strain and uncertainty about its future.
National Economic Council Director Kevin Hassett confirmed that negotiations are underway between the government, lenders, and other stakeholders.
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“Those are ongoing negotiations with the Commerce Department and the creditors,” Hassett told reporters at the White House when asked about the possibility of a bailout.
The Trump administration is reportedly considering a plan that includes a $500 million loan in exchange for the federal government receiving warrants equal to 90% of Spirit’s equity.
Spirit’s financial troubles have deepened over the past two years. The airline filed for bankruptcy twice between 2024 and 2025.
A major blow came when a planned merger with JetBlue Airways was blocked on antitrust grounds during the Biden administration in 2024. The company has not recovered since.
In mid-March, Spirit unveiled a plan to exit bankruptcy through Chapter 11 restructuring by summer, which included reducing its fleet to fewer than 80 aircraft and cutting debt and lease obligations from roughly $7.4 billion to about $2 billion.
However, that plan has faced resistance from lenders, who argue it fails to adequately account for sustained high fuel costs.
Spirit based its turnaround plan on lower fuel costs, but a surge in fuel prices tied to the Iran war upended those assumptions.
President Donald Trump suggested a more aggressive federal role, floating the idea of outright government ownership.
“We’re thinking about doing it, helping them out, meaning bailing them out, or buying it,” Trump said last week. “I think we’d just buy it.”
He added that the government could step in if the price is right, citing the airline’s underlying assets.
“They have some good aircraft, some good assets,” Trump said. “And when the price of oil goes down, we’ll sell it for a profit.”
SPIRIT AIRLINES FUTURE IS UNCERTAIN AS BANKRUPTCY PRESSURES MOUNT
With negotiations still in progress, the fate of Spirit Airlines now hinges on whether the administration, creditors, and the company itself can reach a deal to keep the carrier afloat.
“We have somebody that wants to run it, do a good job, smart person,” Trump said. “And if they run it properly and if prices come down, all of a sudden it’s a valuable asset.”
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