The Trump administration is working on a financial package to help budget carrier Spirit Airlines as it faces imminent liquidation.
“The Trump administration is nearing a rescue deal for Spirit Airlines that would loan the discount carrier as much as $500 million,” The Wall Street Journal wrote.
Exclusive: The Trump administration is nearing a rescue deal for Spirit Airlines that would loan the discount carrier as much as $500 million. https://t.co/pbcLuEwNyQ
— The Wall Street Journal (@WSJ) April 22, 2026
The Florida-based airline has faced financial woes for several years and struggled to recover after its second bankruptcy in under a year.
Airline Reportedly On The Verge Of Liquidation Amid Increased Fuel Costs
Spirit had agreed to be acquired by JetBlue Airways, but a federal judge blocked the merger in 2024 on antitrust grounds.
“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 told 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,” Desai added.
CNBC shared further:
The terms of the talks weren’t immediately clear and a deal could still fall apart. The Wall Street Journal earlier reported that the talks were in an advanced stage.
“We are hopeful that the government will recognize the needs for emergency funds especially in the current economic environment,” a spokesperson for the Associated of Flight Attendants-CWA, which represents Spirit’s cabin crews, said in a statement. “The last thing our economy needs is tens of thousands more people out of work and the last thing the travelling public needs is fewer choices in air travel.”
The U.S. airline industry accepted more than $50 billion in taxpayer aid to weather the Covid-19 pandemic, which is still its biggest-ever crisis, but those funds weren’t handed to one specific airline. Some of the aid gave the U.S. government stock warrants for airlines.
Airlines also received a government bailout following the Sept. 11, 2001, terrorist attacks, but that money was also for more than one company. The U.S. in 2008-2009 also bailed out the auto industry during the financial crisis and took stakes in manufacturers.
The Trump administration has taken equity stakes in some companies it deemed critical to national security like Intel and USA RareEarth, though Spirit stands out as it is in bankruptcy.
“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,” Trump told CNBC‘s “Squawk Box” on Tuesday.
Watch below:
.@POTUS on the airline industry: “Spirit is in trouble and I’d love somebody to buy Spirit. It’s 14,000 jobs… But with American, it’s doing fine, and United is doing very well… I don’t like having them merge.” pic.twitter.com/jAaaMmR99d
— Rapid Response 47 (@RapidResponse47) April 21, 2026
Fox News provided additional coverage:
🚨 TRUMP MIGHT SAVE SPIRIT AIRLINES
The airline is flailing, STRUGGLING to profit and facing bankruptcy
President Trump said somebody could buy Spirit, or the federal government might step in
“It’s 14,000 jobs! Maybe the federal government should help.”
FOX: “WSJ reports the… pic.twitter.com/TL1mImzdA1
— Eric Daugherty (@EricLDaugh) April 21, 2026
USA TODAY has more:
USDOT has held discussions with major airlines on what would happen to passengers with tickets on Spirit if the airline was forced to liquidate, sources told Reuters.
On Tuesday, the CEOs of major low-cost airlines are set to meet with U.S. Transportation Secretary Sean Duffy as they urge Congress to provide temporary tax relief.
Spirit built its turnaround on fuel costs averaging about $2.24 per gallon in 2026 and $2.14 in 2027, based on its March disclosures. By mid-April, jet fuel prices were around $4.24 a gallon, roughly double the level assumed in its projections.
The pressure comes as Spirit seeks court approval for a second restructuring in less than a year, after emerging from bankruptcy in March 2025 and continuing to face elevated domestic capacity, weak leisure demand and a difficult pricing environment. Creditors say the plan leaves little margin for error.
