Donald Trump said Tuesday that Washington could step in to assist Spirit Airlines as the budget airline confronts the prospect of shutting down operations.

Speaking on Squawk Box on CNBC, Trump said: “I don’t mind mergers. I think I’d love somebody to buy Spirit, as an example. You know, Spirit’s in trouble. … Maybe the federal government should help that one out.″

According to individuals familiar with the situation, the airline has recently approached the administration for financial support, though they were not authorized to speak publicly about the discussions. The request was initially reported by The Air Current.

Spirit has been grappling with ongoing financial instability after seeking bankruptcy protection in August for the second time within a year.

The carrier had planned to exit bankruptcy proceedings by mid-2026, in part by offloading aircraft and concentrating service on a smaller group of core markets. However, rising fuel costs following U.S. and Israeli military strikes on Iran in February have intensified the strain. Fuel remains the second-largest expense for airlines after labor.

Prices for jet fuel have climbed sharply this year in the wake of the Iran conflict, nearly doubling overall. Data from Airlines for America, based on figures from Argus, showed that as of Monday, a gallon averaged $3.87 in cities including Los Angeles, Chicago, Houston and New York—roughly 55% higher than before the war began on Feb. 28.

Transportation Secretary Sean Duffy is scheduled to meet later Tuesday with several low-cost airlines to review how higher fuel costs are affecting their operations. People briefed on the plans said carriers are expected to raise the possibility of tax relief during the talks, speaking on condition of anonymity because the discussions had not yet been publicly disclosed.

It remains uncertain whether the administration will extend direct assistance to the Florida-based airline. During the COVID-19 pandemic, the federal government provided billions of dollars in relief to the aviation sector, though the funds were distributed broadly across the industry rather than directed to a single company.

{Matzav.com}