Spirit Airlines’ financial troubles moved into the political spotlight Tuesday when President Donald Trump said he would welcome a buyer for the budget carrier and suggested the federal government could help keep the company afloat. Speaking in a CNBC interview, Trump said the airline is “in trouble” and added that he would like “somebody to buy Spirit,” calling attention to the company’s workforce. He also suggested, “maybe the federal government should help that one out,” without specifying what kind of aid would be involved.
Trump’s comments came as Spirit, the ultra-low-cost carrier, remains in bankruptcy for a second time in less than a year. The airline filed for bankruptcy protection in August and was working toward an exit in late spring or early summer after striking a preliminary deal with lenders, plans that were later disrupted when fighting in the Middle East pushed energy prices higher. The Associated Press said the disruption followed U.S. and Israeli strikes on Iran, which sent oil prices soaring above $100 a barrel and drove jet fuel costs higher in some markets.
The rise in fuel costs added to existing pressure on Spirit’s finances, the Associated Press reported. Spirit has been weakened by soft domestic demand and persistent losses, especially since the pandemic, and the airline has faced fresh uncertainty about whether it can keep operating as costs rise.
In a separate question on Tuesday about potential government relief, Transportation Secretary Sean Duffy told reporters that Trump had directed the Transportation Department to review possible options. “He’s directed us to take a look. I’ll have a conversation with the president later today,” Duffy said, and he added that he was also meeting with some budget carriers later Tuesday.
Spirit’s relatively young fleet has made it an acquisition target, according to the Associated Press. The report said previous buyout attempts from budget rivals like JetBlue and Frontier did not succeed before or during Spirit’s first bankruptcy, and it did not indicate that Trump’s remarks reflected a specific new offer or defined terms for any possible deal.
As the prospect of federal support and a potential sale circulated, the union representing Spirit flight attendants sought to address concerns in a memo sent to members last Thursday. The Associated Press reported that the Association of Flight Attendants said there had been “speculative reports of liquidation” but that “there are ongoing efforts to keep Spirit operating.” The union also told members it was keeping them informed and said, “to be clear, at this time there is no definitive decision to halt operations,” according to the memo.
The political and labor developments come amid broader competition that has squeezed budget carriers. The Associated Press said Spirit’s business has faced pressure from larger airlines that have introduced their own low-cost offerings, even as Spirit’s distinctive bright yellow planes made it recognizable with customers.
The Associated Press reported that by the time of its first Chapter 11 filing in November 2024, Spirit had lost more than $2.5 billion since the start of 2020. The Associated Press said it sent emailed requests for comment to Spirit after Trump’s remarks.