White House close to deal of up to $500m to rescue ailing Spirit Airlines

The White House is finalizing a financing package to help ailing US budget carrier Spirit Airlines, which could receive as much as $500m in loans as rising costs continue to plague the company.

News of the potential deal comes as Spirit and others struggle with soaring fuel costs due to the war with Iran.

Donald Trump said he’s aware that the company is struggling and hinted that federal aid could come. “Spirit’s in trouble, and I’d love somebody to buy Spirit. It’s 14,000 jobs, and maybe the federal government should help that one out,” Trump told CNBC on Tuesday.

Spirit has spent the last few years dealing with financial troubles, filing for bankruptcy twice in the last two years as the company struggled to bring in revenue amid higher costs. Reports from earlier this month suggested Spirit was close to liquidation and was holding talks with its creditors.

In return for the cash buffer, the federal government would receive warrants for a potential stake in the airline, according to the Wall Street Journal, citing sources familiar with the matter.

A $3.8bn merger between Spirit and JetBlue was blocked by a federal judge on antitrust grounds in 2024. The deal would have saved the company, but the judge who stopped it said that the merger would harm consumers by reducing competition.

In a statement, White House spokesperson Kush Desai didn’t comment on the ongoing financing deal but said that the Biden administration had harmed the company.

“Spirit Airlines would be on a much firmer financial footing had the Biden administration not recklessly blocked the airline’s merger with JetBlue,” Desai said. “The Trump administration continues to monitor the situation and overall health of the US aviation industry that millions of Americans rely on every day for essential travel and their livelihoods.”

Spirit Airlines did not immediately respond to request for comment.