US EditionTrump Administration Nearing Rescue Deal for Spirit Airlines: Report
The package could give Washington an equity stake and avert liquidation as Spirit faces a second bankruptcy and surging fuel costs, sources said.
- On Wednesday, the Trump administration neared a deal to lend Spirit Airlines up to $500 million in exchange for equity warrants, aiming to prevent liquidation for the bankrupt carrier.
- Following its August bankruptcy filing, Spirit struggled as mid-April jet fuel prices reached around $4.24 per gallon, roughly double its $2.24 projection for 2026.
- White House spokesperson Kush Desai claimed Spirit would have a "much firmer financial footing" without the Biden administration's blocked JetBlue merger. President Donald Trump said, "I'd love somebody to buy Spirit."
- Shares of low-budget carriers Frontier, Allegiant, and Southwest dropped on Wednesday following reports of the rescue deal. Federal intervention would grant the government warrants, mirroring precedents like post-2001 airline bailouts.
- United Airlines CEO Scott Kirby called Spirit's business model "fundamentally flawed," expressing doubt about the carrier's long-term viability. Direct federal intervention in a bankrupt firm remains an unusually specific strategy.
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US nears loan to rescue Spirit Airlines
Spirit Airlines is in advanced talks to secure a loan of as much as $500 million from the Trump administration as part of last-minute efforts to avoid shutting down, two people familiar with the situation said Tuesday. The post US nears loan to rescue Spirit Airlines appeared first on Hawaii Tribune-Herald.
Donald Trump's planned $500 million bailout for the twice-insolvent low-cost airline "Spirit" divides the Republicans as rarely before. The US President's financing idea creates massive headwinds.
Critics tag trump as ‘Socialist’ for potential spirit airlines takeover plan
Critics tag trump as 'Socialist' for potential spirit airlines takeover plan Republican, T.W. Arrighi, and Democrat, Sawyer Hackett, debate reports the White House is considering giving Spirit Airlines a $500 million bailout... and both are concerned. Latest News from CNN Politics 16 videos
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