President Donald Trump confirmed he is considering the possibility of rescuing Spirit Airlines, saying the government could later sell the company for a profit.
Speaking during an unrelated Oval Office event, Trump said the company has "some good aircraft and good assets."
"When the prices of oil goes down, we'll sell it for a profit," Trump added.
Trump went on to say that if the administration "could get it for the right price," he'd "do it to save the jobs."
A recent report from Bloomberg claimed that such a deal could amount to $500 million, with the government offering the sum in exchange for warrants to purchase the stock.
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 administration has been facing backlash from allies, with some in Congress warning that a Spirit rescue could deepen fears that the government is again choosing winners and losers in private industry. Sen. Ted Cruz called it a "TERRIBLE idea" on social media, and Sen. Tom Cotton called it "Not the best use of taxpayer dollars."
Sen. Elizabeth Warren, a Democrat, has also raised concerns, claiming that the war in Iran was the final nail in the coffin for Spirit given increased oil prices and questioned: "What do the American people get out of this taxpayer bailout? Will the failed airline executives be held accountable?"
JPMorgan analyst Jamie Baker told NBC News that if the deal goes through, other airlines like "JetBlue and Frontier would be inclined to quickly follow Spirit's lead." He also wondered if American Airlines would be "far behind." He added: "Truthfully, we can think of no greater defiant gesture towards the likes of Delta and United than the government stepping in with lopsided assistance."
