Donald Trump commented on a major airline facing difficulties, suggesting he wouldn’t be against a merger or even seeing the federal government helping it out. The US President said the government may help Spirits Airlines, which is struggling and facing liquidation. Speaking to CNBC’s, Mr Trump said: “I don’t mind mergers. I think I’d love somebody to buy Spirit, as an example. You know, Spirit’s in trouble. … Maybe the federal government should help that one out.”
Spirit has already sought government aid from Mr Trump administration in recent days, the news outlet reports citing sources, and Transportation Secretary Sean Duffy is reportedly planning to meet with several discount carriers to discuss the impact higher fuel costs are having on airlines.
Jet fuel costs, skyrocketing after the war in Iran began on February 28, played a part in the difficulties recently experienced by Spirit Airlines too.
Quoting JPMorgan, CNBC said that if fuel stays at about $4.60 a gallon this year, Spirit’s forecast operating margin for the 2026 fiscal year would range from negative 7% to negative 20%.
Last week, an anonymous source said “the budget carrier has been struggling to regain its footing from its second bankruptcy in less than a year, but it now faces the added challenge of a spike in the price of fuel. Fuel is airlines’ biggest expense after labour”.
Spirit forecast a net profit of $252 million last year, according to a court filing in December 2024, but it said in an August report that it lost nearly $257 million in a matter of months stretching from March 13, after it exited its first Chapter 11 bankruptcy, through the end of June.
“We don’t comment on market rumours and speculation,” Spirit said in a statement quoted by the same US TV producer added.
Spirit Airlines, Inc. is an American ultra-low-cost airline headquartered in Dania Beach, Florida, in the Miami metropolitan area and operates scheduled flights throughout the United States, the Caribbean, and Latin America.
