The United States administration of President Donald Trump is nearing a rescue deal for Spirit Airlines (NK, Fort Lauderdale International), people familiar with the matter told the Wall Street Journal.

The newspaper reported that the government would loan the ultra-low-cost carrier as much as USD500 million. In return, it would receive warrants to take a potentially significant stake in Spirit Aviation Holdings.

On April 21, President Trump said he was troubled by the idea that Spirit could go out of business, given it generates around 14,000 jobs including at third-party companies. “Maybe the federal government should help that one out,” he said in an interview with CNBC.

The LCC is currently under a Chapter 11 bankruptcy procedure, but the recent rise of fuel prices has reportedly pushed it to the brink of liquidation.

ch-aviation has reached out to Spirit Airlines for comment. It was not immediately available.

Spirit was poised to exit bankruptcy, its second in less than two years, this summer after reaching an agreement with creditors to reduce billions of dollars in debt and heavily trim its Airbus fleet. It would go from over 200 aircraft at the start of the Chapter 11 process to 75 to 80 narrowbodies. But the recent rise of fuel prices globally have derailed that process.

In the past, Spirit Airlines tried to merge its business with JetBlue Airways but a federal judge blocked the tie-up in 2024 on antitrust grounds. The current administration criticised that decision.

White House spokesman Kush Desai told Bloomberg in a statement: “Spirit Airlines would be on a much firmer financial footing had the Biden administration not recklessly blocked the airline’s merger with JetBlue.” He added that the Trump administration continues to monitor the overall health of the US aviation industry.