The Trump administration is nearing a rescue package for Spirit Airlines that could provide up to $500 million in financing for the struggling budget carrier, the Wall Street Journal reported. The deal, which has not been finalized, would reportedly give the government warrants to purchase Spirit stock, potentially leaving taxpayers with a meaningful stake in the airline if it recovers.
It’s an unusually direct federal intervention in the fate of a single airline and comes as Spirit has been trying to survive an extended financial crisis. The low-cost carrier has struggled with rising jet fuel prices, weak demand in the leisure travel market, and the aftermath of a failed turnaround. Spirit had already been seeking government help as it faced the risk of liquidation. The airline reportedly was willing to offer the government equity in exchange for emergency aid, according to The Points Guy.
