Trump Considers $500M Taxpayer Bailout for Spirit Airlines Amid Bankruptcy Crisis

(Photo illustration by The Bulwark / Photos: Getty, Shutterstock)

If Donald Trump has his way, America’s Worst Airline™ could soon become the nation’s flagship carrier. The airline in question? Spirit Airlines.

The ultra-low-cost carrier is on the brink of collapse. It filed for Chapter 11 bankruptcy protection last summer—its second such filing in less than a year—and now faces the possibility of liquidation. The primary culprit? Skyrocketing jet-fuel prices, driven by Trump’s Iran war, which is expected to cost Spirit an estimated $360 million this year. At $40 fares, filling that financial hole is impossible.

Trump’s Proposed Solution: A $500 Million Taxpayer Bailout

Trump is considering a drastic measure: a $500 million taxpayer-funded bailout for Spirit Airlines. In return, the government would receive warrants allowing a 90% stake in the company.

“We’re thinking about doing it. Helping them out, meaning bailing them out. Or buying it. I think we just buy it. We’d be getting it virtually debt-free. They have some good aircraft, some good assets, and when the price of oil goes down, we’d sell it for a profit. I’d love to be able to save those jobs. I’d love to be able to save an airline. I like having a lot of airlines so it’s competitive. . . . If we could get it for the right price, I’d do it.”

Donald Trump, speaking in the Oval Office on Thursday evening

Trump’s proposal raises critical questions: What value would the government actually be purchasing? When JetBlue attempted to acquire Spirit years ago, it sought only the airline’s pilots and jets—not its business model.

Does Trump understand that acquiring Spirit wouldn’t guarantee retention of its non-reclinable seats with minimal legroom? The answer remains unclear.

His apparent motivation appears to stem from a desire to preserve competition in the airline industry—but at what cost?