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Donald Trump is considering federal support for Spirit Airlines amid the carrier’s ongoing financial struggles, according to analysts and aviation experts who warn that government intervention could create market risks. Senators Elizabeth Warren and Ted Cruz also voiced skepticism about using taxpayer money for a bailout.
Jamie Baker, a JPMorgan analyst specializing in aviation, wrote in an April 16 note that he hopes a government takeover of Spirit is a “low-probability scenario,” arguing that airline investors already have “their share of headaches to contend with.” Baker added that Spirit’s bankruptcies were not driven by higher oil prices and that the company has not claimed that as a primary cause.
Baker said that if the administration provides any cash infusion, JetBlue and Frontier would likely “quickly follow Spirit’s lead.” He also questioned whether American would be “far behind” if that pattern emerged.
In an April 23 note, Baker said an avenue “worth exploring” would be for the administration to step in and wind down Spirit in an orderly manner, with the goal of minimizing passenger disruption and “influenc[ing] the reallocation of its remaining fleet and assets.”
Sen. Elizabeth Warren questioned whether taxpayers would benefit from a bailout in a post on X on April 22. She wrote that “Donald Trump’s war with Iran caused the sky-high fuel prices that finally did Spirit Airlines in,” and asked what the “American people get out of this taxpayer bailout.”
Warren also said she wants to know whether “the failed airline executives” would be held accountable.
United Airlines CEO Scott Kirby said during the company’s April 22 earnings call that he is not concerned about Spirit affecting United and that United does not need a federal bailout.
Kirby said that “well-run airlines are still solidly profitable, even in this environment,” and added that whether Spirit fails or continues flying is unlikely to have much effect on United.
He also said he feels for people at Spirit, but argued that Spirit’s business model was “fundamentally flawed” and that the airline was not going to be able to recover its cash operating costs.
Gary Leff, a travel and points expert and the main writer behind View From the Wing, wrote on April 20 that the situation is being framed as an emergency driven by fuel costs, but that “this is not because of fuel.”
Leff also said the Trump administration would not want to see an airline go under because of its military operation in Iran. He argued that fuel is not to blame because Spirit spent most of the last two years in bankruptcy, does not have a clearly viable business model, and has “a terrible brand with consumers.”
Leff added that “the economy as a whole” does not benefit when investment decisions are made politically, and warned that “socializing losses and privatizing gains” can encourage risk-taking by owners who do not bear the losses.
Sen. Ted Cruz called bailing out Spirit Airlines an “absolutely terrible idea” in a post on X on April 22. He cited the TARP corporate bailouts as a “huge mistake” and said the government “doesn’t know a damn thing about running a failed budget airline.”
Ben Schlappig, a travel blogger, consultant, and points expert who founded the One Mile at a Time aviation blog, wrote in an April 21 article that government taking a stake in individual airlines “seems like a bad idea for competition.”
Schlappig said he does not think taxpayer money should be used to keep one struggling airline alive, describing it as effectively subsidizing airfare for “a matter of months.” He also said broader industry support is likely to be discussed in the coming weeks.
Schlappig warned that if oil prices remain very high, even the world’s most profitable airlines could lose money, potentially reshaping the industry quickly.
Sara Nelson, president of the Association of Flight Attendants, which represents 55,000 flight attendants across 20 airlines, wrote on X that the union supported the failed JetBlue-Spirit merger and said the benefits of airline workers should be considered if there is a bailout.
Nelson said that “thousands of Flight Attendants and other frontline workers” have their “lives, paychecks, healthcare, homes, and retirement hanging in the balance.” She added that “real people” are hoping for a lifeline and said they deserve “consideration and kindness.”
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