U.S. Gov't Could End Up Owning 90% Of Spirit In Rescue Deal
Summary:
WSJ says the Trump administration's possible $500 million rescue deal could leave the U.S. government with 90% control.
WSJ says Commerce Secretary Howard Lutnick is leading the effort in U.S.-Spirit talks.
BBG reported earlier on a potential $500 million rescue loan for Spirit.
News of a possible rescue loan for Spirit emerged last week.
Polymarket:
More Color on Potential Deal
Shortly after, The Wall Street Journal reported on the Trump administration’s potential rescue package for bankrupt Spirit Airlines. Bloomberg followed with a report stating that the emergency deal to save Spirit could give the U.S. government the option to own up to 90% of the carrier after bankruptcy.
Both reports state that the draft deal could provide up to $500 million in financing in exchange for warrants tied to a large equity stake, although talks remain ongoing and no final agreement has been reached. Bloomberg reports that
Commerce Secretary Howard Lutnick is leading the effort to save Spirit through an emergency agreement.
WSJ Breaks Story on Trump Admin Nearing Possible Rescue Loan for Spirit
The Wall Street Journal reports that the Trump administration is nearing a rescue deal for bankrupt Spirit Airlines that could include up to a $500 million loan in exchange for warrants that would give the federal government a potentially large equity stake.
The WSJ noted that the Transportation and Commerce Departments are involved in talks to help save struggling Spirit, which faces the risk of imminent liquidation.
*TRUMP ADMIN. NEARS ~$500M RESCUE DEAL FOR SPIRIT AIRLINES: WSJ
— zerohedge (@zerohedge) April 22, 2026
Last week, multiple news outlets reported that Spirit was flying on fumes as soaring jet fuel prices pushed the bankrupt airline deeper into turmoil. The carrier, in its second bankruptcy since 2024, had been set to exit bankruptcy this summer, but the jet fuel price shock clearly derailed those plans.
There was also a report late last week from aviation news website The Air Current stating that the airline had asked the Trump administration for "hundreds of millions of dollars in emergency funding" to prevent liquidation by creditors.
Then on Tuesday, President Trump told CNBC's Squawk Box that the federal government could help Spirit.
"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," Trump said.
🚨 PRESIDENT TRUMP JUST NOW: "I'd love somebody to buy Spirit, as an example. You know, Spirit's in trouble."
— Eric Daugherty (@EricLDaugh) April 21, 2026
"And I'd love somebody to buy Spirit. It's 14,000 jobs. And maybe the federal government should help that one out!"
"You know, I tell my people. But with American, it's… pic.twitter.com/P488KMfox6
Transportation Secretary Sean Duffy met with budget carriers later on Tuesday to discuss the impact of higher jet fuel prices on their businesses.
If the federal government provides Spirit with a rescue deal in exchange for a major stake in the airline, it would add the airline to the growing list of firms in which the Trump administration has taken stakes, including Intel, MP Materials, USA Rare Earth, Trilogy Metals, and others.