The Trump administration is nearing a deal to rescue struggling Spirit Airlines, The Wall Street Journal reported April 22. The low-cost, Florida-based airline, which was planning to exit its second bankruptcy since 2024 before jet fuel prices went sky high, is reportedly ready to offer the U.S. government an equity stake in the company in exchange for $500 million in emergency funding to avoid liquidation.
The possible deal comes a day after President Donal;d Trump said he hoped someone would buy the company.
During an April 21 discussion with CNBC’s “Squawk Box” about a potential United Airlines-American Airlines merger, Trump said, “I don’t mind mergers. I think I’d love somebody to buy Spirit, as an example. You know, 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,” he said.
In 2025, the Trump administration took a 10% stake in tech company Intel Corp. for $11.1 billion in funds and pledges.
Is Spirit Airlines liquidating?
Last week, The Air Current reported that the spike in jet fuel prices could force the Daria Beach-based carrier to liquidate its assets, citing sources familiar with the matter.
The no-frills carrier is expected to exit its second bankruptcy since 2024 sometime this summer. It has fought desperately after selling aircraft, reducing its network to its key cities, and reaching agreements with its creditors to shrink its debt and lease obligations by billions of dollars.
But the recent fuel hikes resulting from the U.S./Israel conflict with Iran and the on-again, off-again closing of the Strait of Hormuz, which affects 20% of the world’s oil and natural gas, have affected all airlines, and fuel prices are generally about 40% of an airline’s operating costs.
Five major U.S. airlines — JetBlue, United Airlines, Delta Air Lines, Southwest Airlines, and American Airlines — have all raised checked bag fees in response to rising costs.
Delta has also cut some summer flights, including weekend service between Northwest Florida Beaches International Airport (ECP) and Detroit Metropolitan Wayne County Airport (DTW).
If Spirit Airlines liquidates, can I get a refund on my tickets?
If Spirit is forced to ground its planes and liquidate, and you haven’t canceled any future bookings, you have some options.
C. A. Bridges is a journalist for the USA TODAY Network-Florida’s service journalism Connect team. You can get all of Florida’s best content directly in your inbox each weekday day by signing up for the free newsletter, Florida TODAY.
(This story was updated to add new information.)
This article originally appeared on The Daytona Beach News-Journal: Spirit may get $500 million bailout deal with Trump administration
Reporting by C. A. Bridges, USA TODAY NETWORK – Florida / The Daytona Beach News-Journal
USA TODAY Network via Reuters Connect
