Trump says he’s considering buying Spirit Airlines ‘at the right price.’ It might still be a bad deal
CNN • • business
Key Points:
- President Donald Trump expressed willingness to consider purchasing Spirit Airlines if the price is right, noting the airline's valuable assets despite its financial troubles.
- The administration is reportedly in advanced discussions about a federal bailout package for Spirit Airlines, potentially up to $500 million, with Trump suggesting the government might buy the airline outright.
- Spirit Airlines has struggled financially due to the Covid pandemic's impact on travel and rising jet fuel costs from the Iran war, filing for bankruptcy twice and facing doubts about long-term viability.
- Critics including senators and airline executives warn that a bailout may only delay Spirit’s inevitable failure, citing the airline’s flawed business model and increasing competition from larger carriers offering low-fare options.
- Spirit had planned to emerge from bankruptcy with a restructured debt plan before recent fuel price surges, but shareholders and some officials remain skeptical about the airline’s ability to recover sustainably.
