Report: Trump Administration Nears $500 Million Rescue Deal for Spirit Airlines

Spirit Airlines, the beleaguered ultra-low-cost carrier that was reportedly nearing the end of its life just last week, is getting rescued.

Several news outlets, including the Wall Street Journal, reported on Wednesday that the Trump administration was nearing a rescue deal for Spirit, an airline that President Trump told CNBC on Tuesday he was interested in saving.

According to the Journal, Spirit would receive a $500 million loan from the U.S. government, which would receive warrants that could lead to a significant stake in Spirit in return. The Trump administration signed a similar deal with another struggling American company, Intel, last August. In that agreement, the government converted billions in federal grants into a nearly 10% equity stake in the chipmaker.

The White House did not confirm the specifics of the report, but a spokesperson told Bloomberg that the administration is “monitoring the situation and overall health of the U.S. aviation industry.” Additionally, Transportation Secretary Sean Duffy confirmed that the president has directed the Department of Transportation (DOT) to review rescue options.

Spirit has been struggling in recent years, so much so that it attempted to be acquired by JetBlue in 2024, a deal that was blocked by the previous Department of Justice. Spirit emerged from that failed deal, and subsequently two bankruptcies, and tried to pivot toward becoming a more premium airline. That includes ceasing operations at 14 airports and rejecteing leases for dozens of aircraft, including several A320neo and A321neo models, as it worked to resize its fleet.

However, those plans did not have a chance to fully form. The breaking point came with the recent fuel price surge, caused by the war in Iran, which pushed the airline toward the brink of liquidation.