Donald Trump, commenting on a major airline facing difficulties, suggested he would not be against a merger or even see the federal government helping with it.
The US President said the government could help Spirits Airlines, which is struggling and facing liquidation. Speaking to CNBC, Mr Trump said: “I have no objection to a merger. For example, I think I would like someone to buy Spirit. You know, Spirit is in trouble. … Maybe the federal government should help them out.”
As reported by CNBC, Spirit has sought government aid from Mr. Trump’s administration in recent days, according to people familiar with the matter, and Transportation Secretary Sean Duffy plans to meet with several discount carriers to discuss the impact of higher fuel prices on airlines.
Jet fuel prices, which skyrocketed after the war in Iran, also played a role in the difficulties recently experienced by Spirit Airlines.
Citing JPMorgan, CNBC said that if fuel remains at around $4.60 a gallon this year, Spirit’s projected operating margin for the 2026 fiscal year will range from negative 7 percent to negative 20 percent.
“The budget carrier is struggling to recover from its second bankruptcy in less than a year, but it now faces the additional challenge of rising fuel prices. Fuel is airlines’ biggest expense after labor,” an unnamed source said last week.
Spirit had forecast a net profit of $252 million last year, according to a court filing in December 2024, but in an August report it said it had lost about $257 million by the end of June, just a few months from March 13, after exiting its first Chapter 11 bankruptcy. “We do not comment on market rumors and speculation,” Spirit said in a statement, quoting the same US TV producer.
It is also understood that pilot and flight attendant unions have made concessions in recent months to help the struggling airline. CNBC also reported that Spirit planned to shrink and focus on high-demand travel periods and routes earlier this spring in its bid to exit bankruptcy.
Spirit Airlines, Inc. is an American ultra-low-cost airline headquartered in Denia Beach, Florida, in the Miami metropolitan area and operating scheduled flights throughout the United States, the Caribbean, and Latin America.
