Donald Trump is eyeing a government lifeline for Spirit Airlines as the budget carrier buckles under soaring fuel costs driven by a war he started.
In a phone interview with CNBC on Tuesday, the president suggested the federal government could step in to prop up the struggling airline, which is now staring down a potential liquidation.
“I would love somebody to buy Spirit...Spirit’s in trouble,” Trump, 79, said, adding that roughly 14,000 jobs are at risk. “Maybe the federal government should help that one out.”
The Daily Beast has reached out to Spirit Airlines and the White House for comment.
The comments come as jet fuel prices spike amid ongoing disruptions in the Strait of Hormuz—a critical chokepoint that handles about 20 percent of the world’s oil supply. Jet fuel prices climbed as high as $4.88 per gallon in March as the conflict stretched into its eighth week, squeezing airlines already operating on razor-thin margins.
The ultra-low-cost carrier, which relies heavily on cheap fuel to sustain its ticket prices, has been scrambling to stay afloat after filing for Chapter 11 bankruptcy protection in August 2025—its second bankruptcy in less than a year.
Now, its survival plan is rapidly unraveling. Spirit had hoped to exit bankruptcy as early as this summer under a restructuring effort dubbed “Project Soar,” which aimed to slash billions in debt and stabilize operations. But that plan hinged on one key assumption: lower fuel costs.
Instead, prices have surged, and Spirit is already brainstorming a way out. In its most recent annual report, Spirit warned that rising fuel costs would have an “immediate and substantial negative impact” on its restructuring efforts to prevent a liquidation. The company has already taken aggressive steps to cut costs, including furloughing pilots, reducing staff, and trimming pay.
At the same time, the Association of Value Airlines, which represents low-cost carriers, sent a letter to Congress last Tuesday lobbying for temporary relief from taxes and fees, arguing the current cost environment is unsustainable.
The pressure campaign is also moving directly into Washington. Airline executives are expected to meet with Transportation Secretary Sean Duffy, 54, this week to discuss the industry’s mounting challenges
Trump’s openness to federal intervention marks a notable shift—even as he remains hostile to consolidation in the airline industry.
Spirit previously attempted to merge with JetBlue in 2022, but the deal was blocked by a federal judge on antitrust grounds after the Justice Department argued it would harm competition. In his CNBC interview, Trump signaled opposition to another potential tie-up, dismissing reports of a United Airlines–American Airlines merger.
“I don’t like it,” he said. “American—it’s doing fine, and United is doing very well.”
He warned that consolidation could mirror what has happened in the defense and aerospace sectors, where a shrinking number of major players has, in his view, reduced competition and innovation. “It makes them lazy,” he said.
Trump’s bailout talk comes as the Iran war drags well past the White House’s earlier four- to five-week forecast—and as his own energy secretary Chris Wright, 61, warns Americans could be stuck with elevated gas prices through 2027.
Any peace deal, meanwhile, still looks shaky. Despite Trump’s recent insistence on Truth Social that the Strait of Hormuz is “COMPLETELY OPEN,” disruptions to the waterway persist.
