Business Politics US & Canada

Trump considers Spirit Airlines bailout

Trump considers Spirit Airlines bailout

The Trump administration is exploring a potential taxpayer-funded bailout of Spirit Airlines as the budget carrier struggles through its second bankruptcy in a year.

Under the proposed plan, the federal government would invoke the Defense Production Act to purchase the airline, effectively turning it into a state-owned entity.

President Trump argues the move is necessary to save thousands of jobs and secure transport capabilities for military personnel and cargo during the ongoing Iran conflict.

However, the proposal has sparked significant division within the Republican Party, with some members criticizing the move as an overreach of government power into private business.

Spirit Airlines Acroterion;, CC BY-SA 4.0
Spirit Airlines
Ultra low cost airline in the United States
Donald Trump
President of the United States (2017–2021; since 2025)
United States Department of the Treasury
United States federal executive department