Trump Advocates for Spirit Airlines Acquisition Amid Bankruptcy Struggles
Former President Donald Trump expressed hope on Tuesday that someone will step in to purchase Spirit Airlines, a low-cost airline grappling with challenges as it attempts to navigate bankruptcy.
During an interview on CNBC’s “Squawk Box”, he mentioned, “I don’t mind a merger,” indicating this could potentially alleviate the difficulties Spirit is currently facing.
“As you know, Spirit is in trouble and needs someone to help. That’s 14,000 jobs at risk, and perhaps the federal government should lend some support,” Trump added. He also contrasted the situation with ongoing merger talks between United Airlines and American Airlines, expressing his general disfavor towards such consolidations since those companies “do very well.”
Challenges Ahead for Spirit Airlines
Secretary of Transportation Sean Duffy, speaking at an event about air traffic control system reforms, acknowledged Trump’s comments and stated he would contemplate the matter since “the president says to take a look. And he’s my boss.”
Spirit Airlines filed for Chapter 11 bankruptcy protection in November 2024 after its plans for a merger with JetBlue and Frontier fell through. In August 2025, the airline submitted a second bankruptcy application as its financial situation worsened.
Path to Emergence from Bankruptcy
In late February, Spirit announced a deal aimed at allowing it to exit bankruptcy proceedings by early summer after negotiating with its lenders. The agreement is designed to help the airline concentrate on popular routes, reduce high costs, and ultimately emerge as a more streamlined operation. They plan to enhance their premium seating options and strengthen their loyalty program to attract repeat customers while maintaining affordability.
However, the recent surge in fuel prices poses a considerable threat to Spirit’s recovery strategy. Its low-cost framework leaves it particularly vulnerable, making it challenging to raise fares in response to rising costs without risking a drop in demand—especially under the strain of ongoing geopolitical tensions due to the Iran war.
Bloomberg reported that some creditors are now contemplating the possibility of liquidating Spirit due to these circumstances. Concerns have also been raised about the restructuring plan’s sustainability if fuel costs remain elevated. JPMorgan analysts estimate that higher fuel prices might inflate Spirit’s expenses by approximately $360 million this year, potentially surpassing the $337 million cash reserve reported late last year.
In a recent court filing, the company expressed optimism that fuel price volatility might lessen in the coming months, hoping the situation stabilizes by late spring.
FOX Business has reached out for comments from both the White House and the Department of Transportation.
