The White House is reportedly weighing a plan to assume control of Spirit Airlines, utilizing a portion of the bankrupt airline’s fleet for military operations.
According to a report by CBS News on Friday, President Trump might invoke the Defense Production Act to provide Spirit Airlines with funding for purposes related to national defense.
The proposed plan involves the Pentagon leveraging the budget airline’s “excess capacity” for transporting troops, military cargo, or conducting other defense-related missions, as reported by sources.
This strategy would require the approval of Spirit’s creditors.
Spirit Airlines, recognized for its distinctive yellow aircraft and budget-friendly fares, has filed for bankruptcy twice over the past two years.
The airline’s efforts to stabilize its finances have been challenged by the escalating cost of jet fuel, exacerbated by the ongoing conflict in Iran.
The carrier projected fuel costs averaging âabout $2.24 per gallon in 2026 and $2.14 in 2027, as part of its plan to stay afloat, according to Reuters.
However, jet fuel prices are currently averaging $4.30 a gallon.
An attorney for Spirit Airlines warned during a bankruptcy hearing Thursday that the carrier may only have days left to operate, according to CBS News.
The company reportedly recently missed an interest payment, putting it in danger of a creditor initiating a default action against Spirit which could prompt the carrier to liquidate its assets.
Trump has recently expressed interest in bailing out Spirit.
“We’re thinking about doing it, helping them out and meaning bailing them out or buying it. I think we just buy it,” he told reporters in the Oval Office Thursday.
“We’d be getting it virtually debt free. They have some good aircraft, some good assets, and when the price of oil goes down, we’ll sell it for a profit,” the president added.
The Trump administration is reportedly nearing a deal to lend Spirit as much as $500 million in exchange for a stake in the carrier, according to the Wall Street Journal.
The White House, Pentagon and Spirit Airlines did not immediately respond to The Postâs requests for comment.
White House spokesman Kush Desai told CBS News that reporting âabout the mechanism or structure of any deal between the federal government and Spirit Airlines, unless officially unveiled by the Administration, should be regarded as speculation.”
