The White House is finalising a financing package worth up to $500m to help struggling US budget carrier Spirit Airlines, as rising fuel costs linked to the war with Iran compound the company's ongoing financial troubles.
President Donald Trump acknowledged the airline's plight on Tuesday, 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 higher costs and dwindling revenue. Reports earlier this month suggested the carrier was close to liquidation and had been in talks with creditors. In return for the cash injection, the federal government would reportedly receive warrants for a potential stake in the airline.
A proposed $3.8bn merger between Spirit and JetBlue was blocked by a federal judge on antitrust grounds in 2024, a move that White House spokesperson Kush Desai said had harmed the company. "Spirit Airlines would be on a much firmer financial footing had the Biden administration not recklessly blocked the airline’s merger with JetBlue," Desai said, adding that the Trump administration continues to monitor the situation.
Spirit Airlines did not respond to a request for comment.
