Spirit Airlines Bailout Talks

A possible federal intervention could see the U.S. government taking a 90% ownership stake in Spirit Airlines to prevent its total collapse.

The airline has not turned a profit since 2019 and has been hit particularly hard by the escalating costs of the Middle East conflict.

While some Republicans, including Senator Ted Cruz, have slammed the proposal as 'corporate welfare,' administration officials argue it is necessary to preserve competition in the aviation sector.

The deal would likely include strict conditions on executive pay and operational restructuring as the carrier attempts to emerge from bankruptcy protection.