economy
Government may ‘just buy’ struggling Spirit Airlines, Trump says
President Donald Trump could come to the rescue of the struggling Spirit Airlines by buying out the company, he said during an Oval Office event on Thursday.
TL;DR
- President Donald Trump expressed interest in the federal government buying out Spirit Airlines.
- The budget airline has struggled financially, filing for bankruptcy twice between 2024 and 2025.
- Rising fuel costs due to the Iran war and Strait of Hormuz uncertainty have negatively impacted Spirit.
- Trump indicated the government would buy the airline if they could secure it at a favorable price.
- He suggested selling the airline for a profit once oil prices decline.
- Spirit Airlines recently announced a restructuring plan to emerge from Chapter 11 bankruptcy.
- The airline's plan involves downsizing its fleet, focusing on high-demand routes, and reducing debt.
- Lenders have reportedly objected to Spirit's restructuring plan.
- The Trump administration's Commerce and Transportation departments were reportedly nearing an agreement for a loan up to $500 million for Spirit.