Spirit Airlines’ Fate in the Balance as Trump Administration Hints at Government Buyout

As Spirit Airlines’ future hangs in the balance, US President Donald Trump’s administration hints at a possible government buyout. Spirit’s lawyer, Marshall Huebner of Davis Polk, said at a hearing Thursday that the airline’s accessible cash won’t last long.

Government Buyout

To make matters worse, Spirit urgently needs the funds. Huebner said, “So either new financing, either or both of new financing or access to almost $240 million of restricted cash, is absolutely essential. Round about, no later than the end of next week.”

Trump later said Thursday at the White House: “We’re thinking about doing it, helping them out, meaning bailing them out, or buying it.” If the government buys it, Trump said it could “sell it for a profit.”

He added, “I’d love to be able to save those jobs. I’d love to be able to save an airline. I like having a lot of airlines, so it’s competitive.”

Huebner did not outline the proposed rescue plan during Thursday’s hearing. 

Spirit CEO Dave Davis said in an email,  “We are grateful for President Trump’s support and look forward to continuing to work with him and his Administration on a solution that protects thousands of jobs, preserves and enhances competition and helps ensure Americans continue to have access to affordable fares.” 

Spirit’s Financial Challenges

Spirit was expected to emerge from bankruptcy by midyear. However, US-Israel attacks on Iran have driven up jet fuel costs. In February, the airline reported almost $28.3 million operating loss, according to a court filing. This was before fuel price increases affected carriers.

To cope with losses, Spirit aggressively sold its aircraft and shrank its network. In May 2025, Spirit operated 19,575 flights, according to Cirium. But by May this year, that number has decreased to 9,353.

Some industry insiders and analysts say other airlines, particularly low-cost carriers, may also pursue similar support from the US government. Earlier this week, low-cost airlines met with Transportation Secretary Sean Duffy to discuss fuel costs, according to CNBC.