Trump is proposing that taxpayers take over Spirit Airlines instead of bailing it out
The Points Guy founder Brian Kelly discusses how the Spirit Airlines bankruptcy could affect travel.
President Donald Trump has doubled down on the idea of a taxpayer-funded takeover of Spirit Airlines instead of a traditional bailout, an approach critics have previously described as highly problematic.
Trump reaffirmed his interest in providing the airline with a financial lifeline during a meeting in the Oval Office on Thursday, adding that the plan would include reselling the carrier if oil prices fall.
“We are thinking of doing it, helping them and that means rescuing them or buying them. I think we just buy,” he said.
“We will be acquiring it debt-free. They have good planes, some good assets, and if the price of oil goes down, we will sell it to make a profit.”
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President Donald Trump speaks in the Oval Office at the White House on Oct. 6, 2025, Washington, DC (Photos by Anna Moneymaker/Getty Images)
The comments came amid talks of a potential bailout that includes a $500 million loan aimed at saving thousands of American jobs and keeping the airline industry competitive.
“It’s a state of bankruptcy,” Trump said. “It’s in bankruptcy court. And we’re looking to see if we can get it at the right price, I’m going to do it to save jobs.”
Spirit Airlines has faced years of mounting financial challenges that have been pushing the company toward closure, including multiple Chapter 11 bankruptcy filings, failed attempts to merge with low-cost competitors, and rising operating costs caused in part by rising jet fuel prices linked to the conflict involving Iran.
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Spirit Airlines flights at Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, on Oct. 24, 2023. (Eva Marie Uzcategui/Bloomberg via Getty Images/Getty Images)
Trump said the plan would be to put a “smart person” in charge of the airline, wait for oil prices to drop, and then resell the company for a profit once it becomes a valuable asset again.
“We have someone who wants to manage it, do a good job, a smart person, if he runs it properly and if the prices go down, suddenly it becomes valuable,” he said.
The main reason for taking office, said Trump, is to protect the lives of approximately 18,000 workers.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| FLYYQ | SPIRIT AVIATION HOLDINGS INC | 1.11 | -0.39 |
-26.00% |
He also emphasized that keeping a large number of airlines in business is essential to maintaining healthy competition within the industry.
“I’d like to be able to save an airline,” the president added. “You know, I’d like to have more flights. So it’s competitive.”
He also pointed out that Spirit Airlines tried to merge with another airline years ago before the Obama administration blocked the move, a decision Trump described as a mistake.
JetBlue Airways planes land on the tarmac at Fort Lauderdale-Hollywood International Airport on January 31, 2024 in Fort Lauderdale, Florida. (Photo by Joe Raedle/Getty Images / Getty Images)
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Spirit Airlines previously filed for bankruptcy two separate times, in November 2024 and August 2025, amid mounting losses and failed merger talks.
At the end of February, the airline announced that it had reached an agreement with its creditors to exit bankruptcy proceedings.
The company also unveiled a revised corporate strategy aimed at expanding premium seat options and loyalty programs in an effort to improve financial performance while maintaining its low-cost identity.
Anders Hagstrom of FOX Business contributed to this report.
