President Donald Trump on Tuesday suggested that the federal government could help keep a struggling Spirit Airlines afloat, while also encouraging a buyer to step in and rescue the budget carrier.<\/p>\n
\u201cSpirit\u2019s in trouble and I\u2019d love somebody to buy Spirit. It\u2019s 14,000 jobs,\u201d Trump said in a CNBC interview. \u201cAnd maybe the federal government should help that one out.\u201d<\/p>\n
The ultra low-cost carrier filed for bankruptcy protection in August for the second time in less than a year and was aiming to exit in late spring or early summer after striking a preliminary deal with lenders. That plan was quickly disrupted when U.S. and Israeli strikes on Iran sent oil prices soaring above $100 a barrel, with jet fuel costs doubling in some markets as the fighting in the Middle East continues to disrupt global oil supplies.<\/p>\n
Spirit\u2019s relatively young fleet has made it an attractive acquisition target. But previous buyout attempts from budget rivals like JetBlue and Frontier were unsuccessful both before and during Spirit\u2019s first bankruptcy.<\/p>\n
Trump did not offer details on what type of government aid could be provided. But asked separately on Tuesday about potential government relief, Transportation Secretary Sean Duffy told reporters that the president had directed the department to review possible options.<\/p>\n
\u201cHe\u2019s directed us to take a look. I\u2019ll have a conversation with the president later today,\u201d Duffy said, adding that he was also meeting with some of the budget carriers later Tuesday.<\/p>\n
The Associated Press sent emailed requests for comment to Spirit.<\/p>\n
Congress has stepped in to authorize federal support for airlines before, most notably after the Sept. 11 terrorist attacks and during the COVID-19 pandemic.<\/p>\n
Already weakened by soft domestic demand and persistent losses, especially since the pandemic, Spirit has come under growing financial strain as the higher fuel costs have added fresh uncertainty about its ability to continue operating.<\/p>\n
Against that backdrop, the union representing Spirit flight attendants sought to address growing concerns in a memo sent last Thursday to members.<\/p>\n
\u201cThere have been speculative reports of liquidation. While we want to make it clear that conditions have worsened, at this time there are ongoing efforts to keep Spirit operating,” the Association of Flight Attendants said. “We know you need the best possible information on this and we will keep you closely advised. But to be clear, at this time there is no definitive decision to halt operations.\u201d<\/p>\n
Budget carriers like Spirit \u2014 known for its bright yellow planes and no-frills service \u2014 have been under pressure by bigger airlines, which have rolled out their own low-cost offerings. By the time of its first Chapter 11 filing in November 2024, the Florida company had lost more than $2.5 billion since the start of 2020.<\/p>\n","protected":false},"excerpt":{"rendered":"President Donald Trump on Tuesday suggested that the federal government could help keep a struggling Spirit Airlines afloat,…\n","protected":false},"author":2,"featured_media":240856,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[409,28,249,251,250,21539,756,757,752,97574,97575,2558,106541],"class_list":{"0":"post-240855","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-fort-lauderdale","8":"tag-donald-trump","9":"tag-florida","10":"tag-fort-lauderdale","11":"tag-fort-lauderdale-headlines","12":"tag-fort-lauderdale-news","13":"tag-iran","14":"tag-package-100024-ap-online","15":"tag-package-100373-mc-complete-state-national","16":"tag-product-30039-ap-florida-state-news-no-weather","17":"tag-product-30597-ap-business-news-f-wire","18":"tag-product-31995-ap-online-general-financial-business-news","19":"tag-sean-duffy","20":"tag-spirit-airlines-trump-bailout"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/240855","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/comments?post=240855"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/240855\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media\/240856"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media?parent=240855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/categories?post=240855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/tags?post=240855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}