Associated Press

NEW YORK (AP) — President Donald Trump said Thursday that he was weighing a taxpayer-funded takeover of Spirit Airlines with the intent of reselling the struggling budget carrier after oil prices drop. The president confirmed his continued interest in offering Spirit a financial lifeline after a lawyer told a U.S. Bankruptcy Court that the airline was in advanced talks with the U.S. government on a financing deal that would allow Spirit to emerge from Chapter 11 protection. “They have some good aircraft and good assets, and when the prices of oil goes down, we’ll sell it for a profit,” Trump said, speaking at an unrelated Oval Office event. “I’d love to be able to save those jobs. I’d love to be able to save an airline.” Trump stoked speculation of a deal to save Spirit on Tuesday when he encouraged a buyer to rescue the airline and suggested the federal government could help keep it afloat. The White House has attempted to blame Spirit’s predicament on the Biden administration, which in 2023 sued to stop JetBlue Airways from buying Spirit for $3.8 billion. A little more than a year before Trump replaced Joe Biden as president, a federal judge in Dallas blocked a proposed Spirit-JetBlue merger , saying it would drive up airfares for passengers. Trump said he had “a smart person” in mind who could potentially run Spirit and that he believed the airline could get back on solid financial footing. “And they have some very good slots too, which are pretty valuable,” the president added, referring to scheduled times allocated for airlines to take off or land at airports when demand exceeds available capacity. Spirit has struggled with losses for years. The airline filed for Chapter 11 protection in November 2024 and again in August 2025. With the Iran war driving up jet fuel costs for all airlines, creditors earlier this month expressed doubts about Spirit’s ongoing viability, raising the possibility the airline recognized for its bright yellow planes would be forced to sell its assets and cease operating. Before Trump's comments about the government buying the airline outright, Marshall Huebner, a lawyer with Davis Polk who is representing Spirit, said during a U.S. Bankruptcy Court hearing in New York that government financing would make a reorganization possible and help Spirit be more competitive. Details of a potential deal were shared with all three of the company’s primary creditor groups, Huebner said. Advertisement