President Donald Trump said Tuesday the federal government could help struggling Spirit Airlines as the low-cost airline faces possible liquidation.
“I don’t care about mergers,” Trump said on CNBC’s “Squawk Box.”As an example, I’d like someone to buy Spirit.As you know, Spirit is in trouble…Maybe the federal government should help it.”
Spirit has been asking the Trump administration for government assistance in recent days, according to people not authorized to speak to the media about the discussions. The request was first reported by aviation news publication Air Current.
The company has struggled to find its footing since filing for bankruptcy protection for the second time in less than a year in August.
Spirit is expected to emerge from bankruptcy in mid-2026 after selling more aircraft and focusing on a few major cities. But fuel prices have soared since the US and Israel attacked Iran in February, posing an additional challenge. Fuel is the biggest expense for airlines after personnel costs.
Jet fuel prices have nearly doubled this year since the Iran attack, averaging $3.87 a gallon Monday in Los Angeles, Chicago, Houston and New York, according to Argus data released by Airlines for America. This is an approximately 55% increase compared to before the war began on February 28th.
Transportation Secretary Sean Duffy is scheduled to meet with several discount airlines later Tuesday to discuss the impact of rising fuel costs on their businesses, and attendees are expected to press for potential tax breaks, the people said, asking not to be identified discussing matters that have not yet been made public.
It was not immediately clear whether the administration would provide a lifeline to Florida-based airlines. During the coronavirus pandemic, the U.S. government gave billions of dollars to the airline industry, but the money went to many companies rather than a single airline.
