- Spirit Airlines contuse to consider offering the US government an equity stake.
- The proposal has aimed to secure cash and prevent liquidation during Chapter 11.
- High jet fuel prices have complicated the airline’s restructuring efforts.
- The carrier has operated under its second bankruptcy filing.
- Discussions have involved the Trump administration and Transportation Secretary Sean Duffy.
Spirit Airlines has floated the possibility of the US government taking an equity stake to avoid potential liquidation. The parent company Spirit Aviation Holdings has operated under its second Chapter 11 bankruptcy procedure. High jet fuel prices that have followed the US-Israeli strikes on Iran have affected the restructuring process.
The ultra-low-cost carrier has sought a cash injection amid challenges in its Chapter 11 proceedings. Reports have indicated that the proposal has followed the White House’s involvement in other corporate matters such as the Intel stake in 2025. President Donald Trump has commented on the situation during media interviews.
Transportation Secretary Sean Duffy has confirmed discussions with the president and LCC CEOs. Spirit has previously reached agreements with creditors and reduced fleet size before the fuel price increases. Creditors could receive between $1.43bn and $1.7bn in a Chapter 7 liquidation scenario according to the updated disclosure statement from 6 April 2026.
