Spirit is hoping that the U.S. government takes an equity stake in the struggling discount airline, according to new reports from Bloomberg and the Air Current. The twice-bankrupt air carrier is facing liquidation, thanks in part to rising jet fuel prices since the start of the Iran War and hopes that President Donald Trump can provide a bailout of some kind.
Transportation Secretary Sean Duffy is planning on meeting with executives from Spirit this week, according to Bloomberg, though it’s yet unclear whether the company will formally request that the U.S. government take an equity stake. Duffy is the one who requested a meeting with discount carriers to assess their health, according to the Air Current.
The federal government under President Trump made the exceptional move of buying a 10% stake in Intel and various stakes in at least 10 more private companies. Roughly $10 billion in federal money has been used to take stakes in those companies since Trump returned to the White House in 2025, a highly unusual situation since historically that only happens during times of broad economic distress.
Spirit, which has been struggling for years, tried to get acquired by JetBlue back in 2024 but that $3.8 billion merger was blocked by a federal judge. The airlines filed an appeal but ultimately decided it was better to just walk away from the potential merger during the Biden years since anticompetition laws were still being enforced at the time. The airline filed for bankruptcy later that year.
More recently, Spirit has struggled since President Trump decided to start an unprovoked war with Iran, which began when the U.S. and Israel started bombing the country on Feb. 28. The U.S. was able to take out some of Iran’s top leadership, but those positions have been filled by members of the regime who are reportedly even more hardline and less willing to make a deal favorable to the U.S.
Iran has also shut down traffic in the Strait of Hormuz, where about 20% of the world’s oil and natural gas passes through before traveling to Europe, Asia, and Africa. As a result, the price of jet fuel has soared around the world, with flights already being cancelled and conditions only expected to worsen in the days and weeks ahead.
Some Americans seem to believe the jet fuel shortage won’t impact the U.S., though that belief is misguided at best. Even if shortages hit the U.S. later than other countries, energy prices are determined by global supply and demand pressures. And it’s not like U.S. airlines carry fuel for their return flights when they fly to other countries. Any U.S. carrier that wants to fly their planes back to the U.S. has to buy jet fuel in places like Europe, Asia, and elsewhere, as shortages become more acute.
Spirit didn’t immediately respond to questions emailed Monday afternoon. Gizmodo will update this article if we hear back.
