Trump says a ‘final proposal’ for a taxpayer-funded takeover of Spirit Airlines is under consideration
President Donald Trump stated that a 'final proposal' for a taxpayer-funded takeover of Spirit Airlines is under review, with no decision yet made. The airline, in its second bankruptcy in less than two years, is facing mounting debts and rising fuel costs linked to the Iran conflict. While the administration claims the move could preserve jobs and yield a future profit, critics question the use of public funds for the low-cost carrier.
- ▪President Trump said a final decision on a potential taxpayer-funded bailout of Spirit Airlines has not been made, but a proposal is under active consideration.
- ▪Spirit Airlines filed for Chapter 11 bankruptcy protection in August 2025, reporting $8.1 billion in debts and $8.6 billion in assets, amid rising operating costs and weak travel demand.
- ▪The Trump administration argues the intervention could preserve jobs and allow the government to resell the airline at a profit, but lawmakers from both parties have criticized the use of taxpayer money.
- ▪Spirit’s creditors have expressed doubts about its ability to continue operations due to increased jet fuel costs from the Iran war, which worsened its cash flow problems.
- ▪Aviation analytics firm Cirium noted that Spirit’s domestic passenger numbers and available seat capacity have significantly declined compared to the previous year.
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President Donald Trump said Friday that his administration was still weighing a taxpayer-funded takeover of Spirit Airlines, with talks ongoing and no final decision yet on whether to move forward with a potential bailout for a carrier mired in bankruptcy proceedings for the second time in less than two years.Recommended Video Trump emphasized that a deal to rescue the financially strapped airline remained under review. The president did not provide details but said an announcement could come later Friday or Saturday. “We’re looking at it. If we could do it, we’ll do it. But only if it’s a good deal,” he said, speaking to reporters before departing the White House for Florida. The possibility of a bailout first emerged publicly last week, when Trump floated the idea of the U.S.
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