The Points Guy founder Brian Kelly discusses how Spirit Airlines’ bankruptcy could impact travel.
President Donald Trump has doubled down on the idea of a taxpayer-funded takeover of Spirit Airlines instead of a traditional bailout, an approach that critics previously described as deeply problematic.
Trump reaffirmed his interest in giving the airline a financial lifeline during a meeting in the Oval Office on Thursday, adding that the plan would involve reselling the airline once oil prices fall.
“We’re thinking about doing it, helping them and mean we have to save them or buy them. I think we just buy it,” he said.
“We would get it virtually debt-free. They have some good planes, some good assets, and if the oil price goes down, we’ll sell it for a profit.”
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President Donald Trump speaks in the Oval Office of the White House in Washington, DC on October 6, 2025 (Anna Moneymaker/Getty Images/Getty Images)
The comments came amid talk of a possible bailout involving a $500 million loan aimed at preserving thousands of American jobs and maintaining a budget-friendly competitor in the airline industry.
“It’s bankrupt,” Trump said. “It’s in the bankruptcy court. And we’ll see if we can get it for the right price. I would do it to save jobs.’
Spirit Airlines has faced mounting financial challenges for years that have pushed the company toward potential liquidation, including multiple Chapter 11 bankruptcy filings, failed merger attempts with other low-cost competitors and rising operating costs, driven in part by rising jet fuel prices related to the conflict involving Iran.
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Spirit Airlines aircraft at Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, on October 24, 2023. (Eva Marie Uzcategui/Bloomberg via Getty Images/Getty Images)
Trump said the strategy would be to put a “smart person” in charge to run the airline well, wait for oil prices to fall and then resell the company for a profit once it becomes a valuable asset again.
“We have someone who wants to run it, wants to do it right, a smart person, and if they run it right and if prices come down, suddenly it’s a valuable asset,” he said.
A primary motivation for the possible takeover, Trump said, is to protect the livelihoods of what he estimated at 18,000 staffers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FLYYQ | SPIRIT AVIATION HOLDINGS INC | 1.11 | -0.39 |
-26.00% |
He further emphasized that retaining a large number of airlines is important to maintain healthy competition within the industry.
““I would love to save an airline,” the president added. “You know, I like having a lot of airlines. So it’s competitive.”
He also pointed out that Spirit Airlines had tried to merge with another airline years ago before the Obama administration blocked the move, a decision Trump described as a mistake.
JetBlue Airways planes sit on the tarmac at Fort Lauderdale-Hollywood International Airport on January 31, 2024 in Fort Lauderdale, Florida. (Photo by Joe Raedle/Getty Images/Getty Images)
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Spirit Airlines previously filed for bankruptcy twice, in November 2024 and August 2025, amid mounting losses and failed merger talks.
At the end of February, the airline announced that it had reached an agreement with its lenders to end the bankruptcy proceedings.
The company also introduced a revised business strategy aimed at expanding premium seating options and loyalty programs in an effort to improve financial performance while maintaining its value brand identity.
