Spirit Airlines plans to exit bankruptcy by mid-2026 by selling aircraft, cutting costs, and focusing on select high-demand routes|TY (25M) V|CC BY 2.0
President Donald Trump said the government could step in to support Spirit Airlines, as the budget carrier faces a growing risk of liquidation.
Speaking on CNBC, he backed consolidation in the aviation sector and said he would welcome a buyer for Spirit, while leaving open the option of federal assistance.
Rising fuel costs have worsened the carrier’s outlook. Jet fuel prices have nearly doubled in 2026, averaging about $3.87 per gallon in major US cities, up roughly 55% since the Iran conflict escalated in February.
Fuel is the airline industry’s second-largest expense after labor.
Spirit has privately requested government aid, according to Bloomberg, as it works through its second Chapter 11 filing in less than a year.
The airline plans to exit bankruptcy by mid-2026 through aircraft sales, cost cuts, and a focus on select high-demand routes, but progress remains fragile.
The proposal echoes the Trump administration’s recent strategy of trading public funds for stakes in companies such as Intel and US Steel. But not everyone is convinced it’s feasible. Experts say the government may not have the authority to back a single company this way.
Meanwhile, Transport Secretary Sean Duffy plans to meet with low-cost carriers to discuss relief options, including potential tax support, amid growing financial pressure across the sector.
Carriers are expected to push for tax relief, though it remains unclear if direct federal aid will be offered to a single airline, unlike the broad industry support during COVID-19.