Spirit Airlines Bailout Negotiations

Spirit Airlines is nearing a deal for a federal bailout as it faces the threat of liquidation following a second Chapter 11 filing.

The proposed $500 million rescue package, being negotiated by Transportation Secretary Sean Duffy and Commerce Secretary Howard Lutnick, would provide essential liquidity amid surging fuel costs.

Under the terms being discussed, the government could receive warrants allowing it to take a majority ownership stake in the airline.

This potential intervention follows public comments from President Trump urging a rescue for the low-cost carrier to preserve competition in the aviation market.