The White House is finalising a financing package to rescue ailing US budget carrier Spirit Airlines, which could receive up to $500m in loans. The deal comes as the airline faces soaring fuel costs due to the war with Iran.
President Donald Trump acknowledged the company's struggles and hinted at federal aid, telling CNBC: “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.”
Spirit has filed for bankruptcy twice in the last two years amid rising costs and revenue shortfalls. Reports earlier this month suggested the airline was close to liquidation and was in talks with its creditors.
In return for the cash buffer, the federal government would receive warrants for a potential stake in the airline, according to sources cited by the Wall Street Journal. A previous $3.8bn merger between Spirit and JetBlue was blocked by a federal judge on antitrust grounds in 2024.
White House spokesperson Kush Desai did not comment on the ongoing financing deal but said the Biden administration had harmed the company by blocking the merger. Spirit Airlines did not respond to a request for comment.
