Spirit Airlines bankruptcy: Trump weighs taxpayer-backed takeover and later resale

President Donald Trump said on Thursday that a taxpayer-funded takeover of Spirit Airlines was under consideration. Trump said the aim was to sell the budget carrier later, after oil prices fall. The comments followed a bankruptcy hearing where Spirit’s lawyer said talks with the US government were well advanced.

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Spirit Airlines has faced years of losses and repeated bankruptcy filings. The airline sought Chapter 11 protection in November 2024 and again in August 2025. The Iran war has lifted jet fuel costs across the sector. Creditors earlier this month questioned Spirit’s ability to keep operating.

Spirit Airlines takeover plan and Trump’s comments

"They have some good aircraft and good assets, and when the prices of oil goes down, well sell it for a profit,\" Trump said at an unrelated Oval Office event. \"Id love to be able to save those jobs. Id love to be able to save an airline.\" Trump also said a \"smart person\" could run Spirit.

Trump added that the carrier held valuable airport access. \"And they have some very good slots too, which are pretty valuable,\" Trump said. The remark referred to take-off and landing times assigned at busy airports. Such slots can be scarce where demand is higher than available capacity.

Spirit Airlines bankruptcy case and government financing talks

Before Trump spoke about a direct purchase, Spirit’s lawyer described progress on possible support. Marshall Huebner, of Davis Polk, told a US Bankruptcy Court in New York that government financing could enable a reorganisation. Huebner said it would also help Spirit compete more effectively after Chapter 11.

Huebner said key details were shared with Spirit’s three main creditor groups. The size and terms of any financing were not made public. It was also unclear how a federal acquisition would differ from the aid being discussed. The Wall Street Journal and Bloomberg reported $500 million, citing unnamed sources.

Spirit Airlines bailout debate and political reaction

Transportation Secretary Sean Duffy questioned the idea earlier in the week. In a CBS interview aired on Tuesday night, Duffy asked, \"Then who else comes to my door?\" Duffy also said, \"The question will be, can we do anything to save Spirit and make it viable, or would we be putting good money into a company that inevitably is going to be liquidated?\"

Some lawmakers in both parties opposed the idea of using public funds. Sen. Ted Cruz of Texas wrote on X on Wednesday that a deal would be a terrible idea. Sen. Tom Cotton of Arkansas posted, \"If Spirits creditors or other potential investors dont think they can run it profitably coming out of its second bankruptcy in under two years, I doubt the US Government can either. Not the best use of taxpayer dollars.\"

Spirit Airlines fleet, JetBlue block, and union support

Trump has linked Spirit’s problems to the Biden administration. The White House pointed to a 2023 lawsuit that tried to stop JetBlue Airways buying Spirit for $3.8 billion. More than a year before Trump replaced Joe Biden, a federal judge in Dallas blocked the merger. The ruling said fares would rise.

The pilots’ union supported a rescue, arguing Spirit affects low fares. \"Spirit is the reason so many Americans can afford to visit family, travel for work, or take a vacation,\" said Capt. Ryan P. Muller. \"When Spirit enters a market, fares go down.\" Spirit’s relatively young fleet has drawn interest, yet JetBlue and Frontier efforts failed.

Spirit’s future now depends on whether financing or a takeover can keep flights running. Trump’s remarks kept focus on a possible sale after fuel prices ease. Creditors and officials remain divided on the risks for taxpayers. Meanwhile, the bankruptcy process continues as Spirit seeks a path out of Chapter 11.

With inputs from PTI