President Donald Trump on Tuesday floated the idea of federal assistance for Spirit Airlines, a low-cost carrier that has faced persistent financial challenges. "I'd love somebody to buy Spirit Airlines," Trump said in an interview with CNBC. "Maybe the federal government should help that one out."
Trump did not provide specifics on what form this assistance might take, but his comments come amid reports that Spirit Airlines has considered offering the federal government a stake in the company to avoid bankruptcy. The U.S. government previously acquired a 10% stake in Intel last year, a move that Trump has cited as a potential model for other struggling businesses.
Oil Prices Exacerbate Spirit's Struggles
Spirit Airlines, known for its ultra-low-cost fares, has long struggled to turn a profit. Recent spikes in oil prices, driven by geopolitical tensions following the war in Iran, have further strained the airline's finances due to rising jet fuel costs. If Spirit were to collapse, tickets booked with the airline would likely become worthless, leaving thousands of travelers stranded.
"I'd love somebody to buy Spirit Airlines," Trump said. "Maybe the federal government should help that one out."
Trump also addressed rumors of a potential merger between United Airlines and American Airlines, which American Airlines denied in a statement last week. "I don't like having them merge," Trump said, emphasizing that both airlines are performing well independently. He reiterated his focus on maintaining competition within the airline industry.
Neither Spirit Airlines nor the White House has provided further details on Trump's proposal, leaving the airline's future uncertain as it navigates mounting financial pressures.