Trump’s comments come as the administration has been weighing a financial rescue package for the beleaguered airline.
“We’re thinking about doing it, helping them out, I mean, bailing them out, or buying it,” the president told reporters Thursday. “We’d be getting it virtually deb-free.. They have some good aircraft and good assets.”
The proposal under consideration, referenced by the president, continues to have the same parameters as earlier in the week, a person familiar with the matter said: a financing package of up to $500 million in exchange for warrants that give the government the right to purchase up to 90% of Spirit after it emerges from bankruptcy. The person asked to remain anonymous because the talks are private.
Trump suggested that the US could sell the airline “when the price of oil goes down” and make “a profit.” He also said such a move would protect the airline employees’ jobs.
Spirit didn’t immediately respond to a request for comment.
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A purchase would extend a lifeline to the long-struggling carrier that has been facing a potential liquidation while in bankruptcy proceedings. The company filed for Chapter 11 protection in August 2025 for a second time in under a year.
Before the start of the Iran war, Spirit had been expected to exit bankruptcy this summer after reaching an agreement with creditors on a plan to trim billions of dollars in debt and reduce the cost of its fleet.
A government rescue would be the latest twist for an airline that has long searched for a saviour. Spirit tried to merge with other airlines in the past, efforts which failed to result in a deal.
Trump expressed a willingness earlier this month to provide federal assistance to Spirit. US Commerce Secretary Howard Lutnick has led the effort, Bloomberg has reported.
In a meeting with the president Tuesday evening, Lutnick championed the idea of a government bailout, saying it would save thousands of jobs, according to a person familiar with the matter. Transportation Secretary Sean Duffy took a differing stance, voicing doubts about what the government would gain from such a move and saying it could be viewed unfavourably by voters, the person said. The Wall Street Journal reported the exchange earlier.
Representatives for the Commerce Department and the Transportation Department didn’t immediately respond to requests for comment on the meeting.
Before filing its first bankruptcy, Spirit had agreed to be acquired by JetBlue Airways Corp., but the Justice Department under former President Joe Biden sued to halt the deal on antitrust grounds. That deal was blocked by a federal judge in 2024. In 2025, Spirit revived talks to merge with Frontier Group Holdings Inc. but no deal materialised from those discussions.
A government rescue package is likely to draw pushback from competitors, which are also struggling to deal with rising jet fuel prices. In recent weeks, United Airlines Holdings Inc. slashed its full-year profit forecast, while Alaska Air Group Inc. pulled its guidance for 2026. Delta Air Lines Inc. decided not to update its full-year outlook.
More broadly, those challenges underscore a period of uncertainty for the industry. United Chief Executive Officer Scott Kirby even pitched the possibility of a merger with rival American Airlines Group Inc. during a meeting with Trump in February. That conversation predated the start of the conflict in the Middle East by three days.
Trump has since said he is not a supporter of an American-United combination. American has also said it is not interested in merging with United.
(Edited by : Juviraj Anchil)
