The Trump administration is close to reaching a $500 million rescue package for Spirit Airlines, according to a new report.
Bloomberg detailed that the agreement would offer the sum in exchange for warrants to purchase the stock, which jumped after the report came out.
"Spirit Airlines would be on a much firmer financial footing had the Biden administration not recklessly blocked the airline's merger with JetBlue," said White House spokesman Kush Desai in a statement to CNBC.
"The Trump administration continues to monitor the situation and overall health of the U.S. aviation industry that millions of Americans rely on every day for essential travel and their livelihoods."
The company was considering liquidating its asset as part of its bankruptcy crisis, according to a report from last week.
CNBC had detailed that discussions between the airline and its creditors reached a critical stage, with lenders actively weighing whether to continue supporting the restructuring or move toward winding down the business entirely.
Spirit has been struggling to exit Chapter 11 bankruptcy for the second time in under a year. The airline initially filed for bankruptcy protection in November 2024 after reporting heavy losses and debt pressure, and again in 2025 following a failed restructuring attempt.
According to another report by The Wall Street Journal, rising jet fuel prices have significantly undermined Spirit's turnaround plan. The publication reported that the surge in fuel costs, linked in part to geopolitical tensions, has increased operating expenses to a level that some creditors believe makes the current restructuring plan unworkable.
The airline had previously outlined plans to emerge from bankruptcy by early summer 2026, backed by agreements with lenders aimed at cutting its debt from roughly $7.4 billion to about $2 billion. Those plans included shrinking its fleet, reducing routes, and repositioning itself as a leaner low-cost operator. However, further developments noted that the strategy was not viable.
The airline has already taken significant steps to conserve cash, including cutting routes, selling aircraft, and furloughing staff. Reuters previously reported that Spirit planned to reduce its fleet to roughly one-third of its pre-bankruptcy size as part of its restructuring efforts.
Spirit's struggles also follow the collapse of earlier efforts to merge with other carriers. A proposed acquisition by JetBlue Airways was blocked on antitrust grounds, while renewed takeover interest, including talks involving investment firm Castlelake, has yet to produce a viable rescue deal, as reported by Reuters.
Industry analysts say the airline's ultra-low-cost model has been particularly vulnerable to sharp increases in fuel prices and broader cost pressures, leaving little margin for error during restructuring.
