The White House is finalizing a financing package to help Spirit Airlines, which could receive up to $500 million in loans. The airline is struggling due to soaring fuel costs from the war with Iran. President Donald Trump said he is aware Spirit is struggling and hinted federal aid could come.
Spirit has filed for bankruptcy twice in the last two years. Reports from earlier this month suggested Spirit was close to liquidation and was holding talks with creditors.
In return for the cash buffer, the federal government would receive warrants for a potential stake in the airline. A $3.8 billion merger between Spirit and JetBlue was blocked by a federal judge on antitrust grounds in 2024. White House spokesperson Kush Desai said the Biden administration had harmed the company by blocking the merger.
Spirit Airlines did not immediately respond to a request for comment. The specific terms of the financing package remain unclear, including how much of the $500 million loan Spirit will actually receive and when the deal will be finalized.