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President Donald Trump on Tuesday said he wants to see someone purchase Spirit Airlines, with the low-cost carrier facing headwinds as it looks to exit bankruptcy.
Trump was interviewed on CNBC’s “Squawk Box” and said, “I don’t mind mergers” and suggested that could help resolve the issues Spirit faces.
“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,” the president said.
He also drew a distinction between a merger involving Spirit and the reports of a possible merger between United Airlines and American Airlines, saying those companies are “doing very well. I don’t like having them merge.”
RISING FUEL COSTS THREATEN SPIRIT AIRLINES’ BANKRUPTCY EXIT PLAN: REPORTS
Transportation Secretary Sean Duffy spoke Tuesday at an event on reforms to the nation’s Air Traffic Control system and acknowledged the president’s comments, adding he will look into the matter.
“The president says take a look. And he is my boss. And, so, we will take a look,” Duffy said.
Spirit Airlines filed for its second bankruptcy in August 2025 amid mounting losses and dwindling cash reserves. The low-cost carrier first filed for Chapter 11 bankruptcy protection in November 2024 after unsuccessful merger talks with JetBlue and Frontier.
SPIRIT AIRLINES REACHES DEAL TO EXIT BANKRUPTCY PROCEEDINGS BY EARLY SUMMER
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FLYYQ | SPIRIT AVIATION HOLDINGS INC | 0.6 | +0.33 | +122.22% |
In late February, Spirit announced a deal that would allow it to exit bankruptcy proceedings by early summer after reaching an agreement with lenders.
The airline told a bankruptcy court the deal would allow it to emerge as a leaner carrier, focusing on routes and time periods with the strongest demand as well as cutting some of its high-cost aircraft leases and improving the utilization of its remaining fleet.
It also planned to expand premium seating options and enhance its loyalty programs to drive repeat business and preserve its low-fare positioning.
AMERICAN AIRLINES JOINS WAVE OF CARRIERS HIKING CHECKED BAG FEES AS JET FUEL PRICES SKYROCKET
That plan has been threatened by a recent surge in fuel prices driven by the Iran war because Spirit’s low-cost structure is more vulnerable to surging fuel costs as it has less flexibility to raise fares due to the risk of declining demand.
The Wall Street Journal and Bloomberg reported that some of Spirit’s creditors have explored the potential liquidation of Spirit due to the situation. Creditors have also raised concerns about the viability of the restructuring plan if fuel prices remain elevated.
The report noted that JPMorgan analysts estimate that higher fuel prices could add about $360 million to Spirit’s expenses this year, exceeding the $337 million in cash it reported at the end of last year.
The company said in court filings it expects fuel price volatility to ease in the coming months, with conditions potentially stabilizing later this spring.
FOX Business reached out to the White House and the Department of Transportation.
FOX Business’ Bradford Betz and Reuters contributed to this report.
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