Spirit Airlines Nears a $500 Million Bailout from the Trump Administration

Just last week we were hearing reporting that Spirit Airlines could cease operations at any moment as financial struggles continued to plague the airline. Now it's looking like that may not happen after all due to a possible bailout from the federal government.

Here's what we know, as of 3:00 p.m. on Wednesday (April 22):

Spirit Airlines Was on the Brink of Shutting Down

Spirit Airlines has filed for bankruptcy in 2024 and 2025. Earlier this year they said they hoped to emerge from bankruptcy this summer.

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However, just last week reports surfaced that the airline may not have enough cash on hand to continue operations amid the increase in fuel prices (mostly attributed to the conflict with Iran).

Now we're learning that a massive deal is in the works.

Trump Administration Is Likely to Rescue Spirit Airlines

The Trump administration is reportedly nearing a rescue deal for the airline as of this afternoon.

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It could offer $500 million to the airline, reports say. Sources tell the media (including NBC News) that it would help the airline emerge from bankruptcy and face increased fuel costs.

After they emerge from bankruptcy, however, the repots say that the U.S. government could own up to 90% of the airline. The deal is still being negotiated and the exact terms could change.

If a deal is reached, however, it's expected that it would be announced by President Trump himself.

Earlier this week, Trump hinted that it was possible.

"I'd love somebody to buy Spirit," Trump told CNBC in a televised interview on Tuesday. "It's 14,000 jobs, and maybe the federal government should help that one out."

The exact timeline for an announcement of a deal was not immediately clear. But it could happen as soon as this week, CNN reports.