The White House is weighing an extraordinary move to assume control of Spirit Airlines and redeploy part of the bankrupt carriers fleet for military use, in a test of how far Washington should go in rescuing a failing private company.
According to the New York Post, the emerging proposal would see President Trump invoke the Defense Production Act to extend federal loans to Spirit for national defense purposes, as reported by CBS News. The Pentagon, in turn, would tap the budget airlines excess capacity for transporting troops, military cargo or other missions, a step that would effectively fold a commercial carrier into the nations defense infrastructure while keeping it out of the hands of bankruptcy liquidators.
Any such arrangement would still require the consent of Spirits creditors, who hold significant leverage over whether the airline survives or is dismantled. The company, famous for its bright-yellow jets and ultra-low fares, has already declared bankruptcy twice in the past two years, underscoring the depth of its financial distress.
Spirits latest turnaround blueprint has been shaken by soaring jet fuel costs driven by the war in Iran, a reminder of how global instability can punish already fragile businesses. The carrier had projected fuel costs averaging about $2.24 per gallon in 2026 and $2.14 in 2027 as part of its survival plan, according to Reuters, but those assumptions now look wildly optimistic.
Jet fuel is currently averaging $4.30 a gallon, nearly double Spirits planning estimates and a crippling burden for a discount airline that competes on razor-thin margins. 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, raising the stakes for any federal intervention.
The airline reportedly missed a recent interest payment, leaving it vulnerable to a creditor-triggered default that could force a rapid liquidation of its assets. Against that backdrop, President Trump has openly signaled his willingness to step in, telling reporters, Were thinking about doing it, helping them out and meaning bailing them out or buying it. I think we just buy it.
Wed be getting it virtually debt free. They have some good aircraft, some good assets, and when the price of oil goes down, well sell it for a profit, the president added, framing the move as both a national security measure and a potential win for taxpayers. The administration is reportedly nearing a deal to lend Spirit as much as $500 million in exchange for an equity stake, according to the Wall Street Journal, a structure more consistent with conservative preferences for investment over open-ended subsidies.
The White House, Pentagon and Spirit Airlines did not immediately respond to The Posts requests for comment, leaving key details of the plan unresolved and critics on the left to speculate about government overreach. White House spokesman Kush Desai told CBS News that reporting about 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, suggesting that if a deal is finalized, it will be presented as a targeted, temporary measure that strengthens national defense while preserving private-sector value rather than expanding permanent government control.
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