Trump weighs taxpayer takeover of Spirit Airlines with plan to resell

LEXINGTON, Ky. — President Donald Trump said Thursday he is considering a taxpayer-funded takeover of Spirit Airlines with plans to resell the struggling budget carrier once oil prices decline, according to reporting from LEX 18 News.

Trump confirmed his interest in offering Spirit a financial lifeline after a company lawyer told a U.S. Bankruptcy Court that the airline is in advanced talks with the U.S. government on a financing deal. "They have some good aircraft and good assets, and when the price of oil goes down, we'll sell it for a profit," Trump said during an Oval Office event. "I'd love to be able to save those jobs. I'd love to be able to save an airline."

The White House has attributed Spirit's troubles to the Biden administration, which in 2023 sued to block JetBlue Airways from acquiring Spirit for $3.8 billion. A federal judge in Dallas blocked the proposed merger, citing concerns that it would drive up airfares for passengers.

Spirit filed for Chapter 11 protection in November 2024, marking its second bankruptcy filing in under two years. The Florida-based carrier, known for its bright yellow aircraft, has struggled with losses for years. Rising jet fuel costs have intensified creditors' doubts about the airline's viability.

According to reporting from the Wall Street Journal and Bloomberg, citing unnamed sources, a potential government financing package of approximately $500 million would give the government an option to acquire a sizable stake in the airline.

Transportation Secretary Sean Duffy expressed skepticism about a government rescue. "Then who else comes to my door?" he said Tuesday on CBS, questioning whether such a deal would set a precedent for other airlines seeking aid.

Bipartisan opposition emerged from Congress. Sen. Ted Cruz of Texas called the idea "a terrible idea," while Sen. Tom Cotton of Arkansas questioned whether the government could run the airline profitably. "If Spirit's creditors or other potential investors don't think they can run it profitably coming out of its second bankruptcy in under two years, I doubt the U.S. Government can either," Cotton posted.

The union representing Spirit's pilots, however, voiced strong support. "Spirit is the reason so many Americans can afford to visit family, travel for work, or take a vacation," said Capt. Ryan P. Muller, chair of the Spirit Airlines ALPA Master Executive Council. "When Spirit enters a market, fares go down."