By Alison Sider and Brian Schwartz
Spirit Airlines is looking for a lifeline from the Trump administration.
The administration and the troubled discount carrier are in talks about government aid, including a potential U.S. government investment into the company, people familiar with the discussions said.
The discussions were reported earlier by the Air Current. Bloomberg earlier reported that Spirit had proposed offering the government an equity stake in the company.
Spirit filed for bankruptcy protection in August, after a previous bankruptcy filing in late 2024 didn't resolve its financial struggles. Discount airlines have been under pressure for years, with bigger rivals such Delta Air Lines, United Airlines Holdings and American Airlines Group offering their own basic economy fares -- along with more exotic destinations and premium upgrades.
Florida-based Spirit has been working to sell some planes and refocus operations on core cities including Orlando, Fort Lauderdale and Detroit. In February, the carrier reached an agreement with a group of creditors that would let it emerge as a smaller company with a stronger balance sheet and reduced fleet size.
Then came the U.S. and Israel's war on Iran, which led jet-fuel prices to more than double in a matter of weeks. If jet-fuel prices remain elevated for the rest of the year, Spirit's costs would balloon by $360 million, JPMorgan analysts said in a note earlier this month.
Spirit had $704.9 million in cash at the end of February, just before jet-fuel prices started climbing, according to a court filing last week.
The lenders that back Spirit's revolving credit line objected earlier this month to the company's bankruptcy exit plan, saying it might not work if fuel prices remain high.
The Transportation Department has said it is monitoring Spirit's situation and blamed "the failures of the last administration" for the airline's financial stress.
Spirit has struggled to find its footing after a federal judge two years ago blocked its planned sale to JetBlue Airways. The Justice Department challenged that $3.8 billion deal, arguing that eliminating Spirit's bright yellow planes and bargain-basement fares would harm competition and leave cost-conscious travelers with fewer options.
The government has stepped in to help airlines before. The industry got billions of dollars of government aid to continue paying workers during the Covid-19 pandemic. But the government has generally avoided intervening to save a single carrier.
Executives from a number of low-cost airlines are also planning to meet with Transportation Secretary Sean Duffy on Tuesday to discuss challenges facing the industry, according to people familiar with the plans. They have also asked lawmakers for relief from federal excise taxes on fuel.
Write to Alison Sider at alison.sider@wsj.com and Brian Schwartz at brian.schwartz@wsj.com
(END) Dow Jones Newswires
April 20, 2026 18:36 ET (22:36 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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