Donald Trump opens up on Spirit Airlines, but does not fully commit. “I would like someone to buy Spirit… maybe the federal government should lend a hand,” the president said in an interview with Cnbc, implying that public intervention is not excluded, especially in light of about 14,000 jobs at risk.
It is not a clear stance, rather a political signal. Trump says he favors a market solution – “I would be very happy if someone bought it” – but does not rule out the possibility of federal support, at a time when the low-cost carrier is once again on the brink of liquidation.
THE PRICE ISSUE (AND THE BIDEN PRECEDENT)
Behind this “maybe” lies a delicate balance: avoiding a disorderly bankruptcy without opening the way to a new generalized bailout of the sector. Also because the issue is intertwined with a recent precedent: in 2024 the Joe Biden administration blocked the acquisition of Spirit by JetBlue to avoid eliminating an operator considered essential in keeping fares low.
An element that returns today, while Spirit is not only a struggling airline but a piece in the dynamics of U.S. air transport pricing. Trump’s openness can therefore also be read in this light: avoiding that the disappearance of an ultra low-cost carrier results in price increases, in a context already marked by rising fuel costs linked to the clash with Iran and tensions in the Gulf, with inevitable political repercussions just months before the mid-term elections.
SPIRIT’S CRISIS, BETWEEN BANKRUPTCIES AND ENERGY SHOCK
The story of Spirit Airlines is now one of recurring crisis. The airline filed a second bankruptcy petition in August 2025, after a first procedure in November 2024 following the failure of merger talks with JetBlue and Frontier.
Exit from Chapter 11 – that is, controlled bankruptcy under U.S. law – was expected in 2026, thanks to a restructuring plan based on fleet reduction, focus on more profitable routes, and strengthening ancillary revenues. But the context changed abruptly.
The decisive factor was the rise in fuel prices after the military escalation between the United States, Israel, and Iran at the end of February. Jet fuel, the second largest cost item after labor, increased drastically, nearly doubling in a few months.
According to estimates reported by analysts, the cost increase could exceed the company’s available liquidity. Not surprisingly, just last week Bloomberg had flagged the real risk of liquidation, with some creditors ready to pull the plug.
The problem is structural: Spirit’s ultra low-cost model is particularly vulnerable to cost shocks because it has thin margins and little ability to pass increases on to prices without losing demand.
PRESSURE ON WASHINGTON: SPIRIT KNOCKS ON TRUMP’S DOOR
In this context, the company has intensified contacts with the administration. As revealed a few days ago by CBS, Spirit has turned directly to the White House to request an emergency bailout and avoid liquidation.
“Spirit is looking for a lifeline,” a source explained, while industry analysts speak of a company “now running out of liquidity.”
The risk is immediate: if creditors lose confidence, operations could cease in a very short time. Also for this reason, the company’s leadership and other low-cost carriers have started discussions with Secretary of Transportation Sean Duffy, requesting among other things temporary tax relief to offset the surge in energy costs.
Not only that: according to Bloomberg, Spirit has even considered offering the government an equity stake in exchange for liquidity, a sign of an increasingly critical situation.
DUFFY SLOWS DOWN: “DON’T THROW GOOD MONEY AFTER BAD”
While Trump leaves a glimmer of hope, Sean Duffy is much more cautious. The Secretary of Transportation has openly expressed his doubts about the opportunity for a public bailout: “We don’t want to throw good money after bad… Spirit has never managed to become profitable.”
For Duffy, the point is twofold. On one hand, uncertainty about the company’s industrial future: “Is there really a path for it to make it? I don’t know.” On the other hand, the risk of setting a precedent: “If we intervene for Spirit, who will be next?” Even more blunt is his reasoning on the market: “If no one wants to buy it, why should we?”
Yet, Duffy himself acknowledges the systemic value of low-cost carriers, emphasizing the need for “a competitive and dynamic market” in which premium and low-cost airlines coexist. A point that indirectly reinforces the political logic evoked by Trump.
BETWEEN ACQUISITIONS AND MERGERS: WHAT TRUMP WANTS (AND DOESN’T WANT)
The White House line therefore seems oriented towards favoring a market solution. Trump reiterated that he is in favor of consolidation operations, provided they do not reduce competition: “I don’t mind mergers… but American and United are doing very well, I don’t like them merging.”
The distinction is clear. An acquisition of Spirit – possibly by another low-cost carrier – would be seen positively because it would save jobs and capacity without further concentrating the market.
The problem is that, at the moment, there do not seem to be any contenders. The Spirit dossier remains without concrete offers, despite previous consolidation attempts in the sector – such as JetBlue’s, blocked in 2024 for antitrust reasons – which make any operation that reduces competition politically delicate.
A different case is the possible merger between United Airlines and American Airlines, which according to Trump risks creating a dominant giant and “making companies lazy” by reducing competition.
