President Donald Trump on Tuesday suggested that the federal government could help keep a afloat, while also encouraging a buyer to step in and rescue the budget carrier.
鈥淪pirit鈥檚 in trouble and I鈥檇 love somebody to buy Spirit. It鈥檚 14,000 jobs,鈥� Trump said in a CNBC interview. 鈥淎nd maybe the federal government should help that one out.鈥�
The ultra low-cost carrier filed for bankruptcy protection in August in less than a year and was aiming to exit in late spring or early summer after with lenders. That plan was quickly disrupted when U.S. and Israeli strikes on Iran sent oil prices soaring above $100 a barrel, with jet fuel costs doubling in some markets as the fighting in the Middle East continues to disrupt global oil supplies.
Spirit鈥檚 relatively young fleet has made it an attractive acquisition target. But previous buyout attempts from budget rivals and were unsuccessful both before and during Spirit鈥檚 first bankruptcy.
Trump did not offer details on what type of government aid could be provided. But asked separately on Tuesday about potential government relief, Transportation Secretary Sean Duffy told reporters that the president had directed the department to review possible options.
鈥淗e鈥檚 directed us to take a look. I鈥檒l have a conversation with the president later today,鈥� Duffy said, adding that he was also meeting with some of the budget carriers later Tuesday.
The Associated Press sent emailed requests for comment to Spirit.
Congress has stepped in to authorize federal support for airlines before, most notably after the Sept. 11 terrorist attacks and pandemic.
Already weakened by soft domestic demand and persistent losses, especially since the pandemic, Spirit has come under growing financial strain as the higher fuel costs have added fresh uncertainty about its ability to continue operating.
Against that backdrop, the union representing Spirit flight attendants sought to address growing concerns in a memo sent last Thursday to members.
鈥淭here have been speculative reports of liquidation. While we want to make it clear that conditions have worsened, at this time there are ongoing efforts to keep Spirit operating,” the Association of Flight Attendants said. “We know you need the best possible information on this and we will keep you closely advised. But to be clear, at this time there is no definitive decision to halt operations.鈥�
Budget carriers like Spirit 鈥� known for its bright yellow planes and 鈥� have been by bigger airlines, which have rolled out their own low-cost offerings. By the time of its in November 2024, the Florida company had lost more than $2.5 billion since the start of 2020.
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