TheWall Street Journalreports that the Trump administration is nearing a rescue deal for bankrupt Spirit Airlines that could include up to a $500 million loan in exchange for warrants that would give the federal government a potentially large equity stake.
TheWSJnoted that the Transportation and Commerce Departments are involved in talks to help save struggling Spirit, which faces the risk of imminent liquidation.
*TRUMP ADMIN. NEARS ~$500M RESCUE DEAL FOR SPIRIT AIRLINES: WSJ
Last week, multiple news outlets reported that Spirit was flying on fumes as soaring jet fuel prices pushed the bankrupt airline deeper into turmoil. The carrier, in its second bankruptcy since 2024, had been set to exit bankruptcy this summer, but the jet fuel price shock clearly derailed those plans.
There was also areport late last weekfrom aviation news websiteThe Air Currentstating that the airline had asked the Trump administration for "hundreds of millions of dollars in emergency funding" to prevent liquidation by creditors.
Then on Tuesday, President Trump told CNBC'sSquawk Boxthat the federal government could help Spirit.
"I don't mind mergers. I think I'd love somebody to buy Spirit, as an example. You know, Spirit's in trouble. ... Maybe the federal government should help that one out," Trump said.
🚨 PRESIDENT TRUMP JUST NOW: "I'd love somebody to buy Spirit, as an example. You know, Spirit's in trouble.""And I'd love somebody to buy Spirit. It's 14,000 jobs. And maybe the federal government should help that one out!""You know, I tell my people. But with American, it's…pic.twitter.com/P488KMfox6
Transportation Secretary Sean Duffy met with budget carriers later on Tuesday to discuss the impact of higher jet fuel prices on their businesses.
The latestPolymarket beton whether the U.S. will take a stake in Spirit Airlines surged to 40% this morning. The bet is newly created.
Source: ZeroHedge News
