The future of Spirit Airlines has taken a dramatic turn, as Donald Trump indicated he is open to federal intervention to prevent the ultra-low-cost carrier from collapsing.
Speaking in a CNBC interview on Tuesday, Trump pointed to the airline’s workforce as a key factor behind his stance. “I’d love somebody to buy Spirit. It’s 14,000 jobs,” he said, adding that government support could be warranted. “Maybe the federal government should help that one out.”
The comments come at a critical moment for Spirit, which is navigating its second Chapter 11 restructuring since 2024. Prior to the escalation of conflict in the Middle East, the airline had been working toward an exit from bankruptcy by early summer 2026. That timeline now appears increasingly unlikely.
A sharp rise in fuel costs – reportedly nearly doubling following the Iran-related conflict – has significantly worsened the airline’s financial outlook. Industry reports from Bloomberg and CNBC suggest liquidation is now a real possibility, while The Air Current has indicated the airline has sought hundreds of millions of dollars in federal emergency funding.
The situation has triggered urgent discussions at the highest levels of the US aviation sector. According to Reuters, Transportation Secretary Sean Duffy is set to meet with executives from Spirit and several other low-cost carriers, including Allegiant Air, Sun Country Airlines, Frontier Airlines and Avelo Airlines.
Collectively represented by the Association of Value Airlines, these carriers are pushing for broader relief measures. In a letter to Congress, the group has requested a temporary suspension of the 7.5% federal excise tax on airline tickets and the $5.30 per-segment fee – a move aimed at easing cost pressures across the budget airline segment.
Spirit’s challenges reflect deeper structural strains within the low-cost airline model, particularly its sensitivity to fuel price volatility and external shocks. With limited pricing flexibility compared to full-service carriers, ultra-low-cost airlines often face disproportionate risk during periods of geopolitical instability.
At the same time, the crisis has reignited debate around consolidation in the US airline industry. Trump made clear he opposes any potential merger between United Airlines and American Airlines, despite recent speculation following reports that United CEO Scott Kirby had raised the idea in discussions earlier this year.
“I don’t like having them merge,” Trump said, noting that both airlines are currently performing strongly.
American Airlines has since publicly dismissed the speculation, stating it is neither in talks with United nor interested in pursuing a deal.
