President Donald Trump has indicated that the US government could consider supporting struggling budget carrier Spirit Airlines, as the airline faces the possibility of liquidation.
Speaking in an interview with CNBC’s Squawk Box, Trump said he would be open to intervention, suggesting both a potential bailout and consolidation options for the Florida-based carrier.
“I don’t mind mergers… I’d love somebody to buy Spirit… Spirit’s in trouble,” he said, adding that “maybe the federal government should help that one out.”
The comments come as Spirit continues to grapple with financial strain following its second bankruptcy filing in less than a year in August 2025, and amid reports that the airline has recently sought government assistance.
Spirit’s restructuring efforts have been complicated by a sharp rise in jet fuel costs following the escalation of conflict involving Iran earlier this year. Fuel, the airline industry’s second-largest expense after labour, has surged significantly, with prices rising sharply since late February.
Data from Airlines for America shows jet fuel prices have climbed to around $3.87 per gallon in major US markets, marking a substantial increase from pre-conflict levels.
The spike has added to existing challenges for ultra-low-cost carriers like Spirit, which have limited pricing power and thinner margins compared with larger network airlines.
Trump’s remarks come ahead of a planned meeting between US Transportation Secretary Sean Duffy and executives from several low-cost airlines, where carriers are expected to push for relief measures, including potential tax breaks to offset rising fuel costs.
While it remains unclear whether the administration would provide direct support to Spirit, any move to assist a single airline could prove controversial. During the Covid-19 pandemic, the US government provided industry-wide financial aid, rather than targeted support for individual carriers.
Spirit had been aiming to emerge from bankruptcy by mid-2026 after downsizing its fleet and focusing on core routes. However, the combination of rising fuel costs and ongoing financial pressures has raised doubts about its recovery.
Trump’s comments highlight growing concern in Washington over the financial health of smaller airlines, as the industry navigates a volatile cost environment and shifting demand dynamics.