Trump Admin Eyes Bailout for Spirit Airlines

0:00On April 25, the Trump administration is eyeing the Defense Production Act to bail out Spirit Airlines, which is deep in bankruptcy talks. Sources say they're looking at Title III of the Act, which lets the government pump money into key industries for national defense needs. President Trump even floated buying the airline cheap and flipping it later when oil prices drop. White House spokesman Kush DeSai confirmed they're checking all options to keep Spirit flying for passengers and workers. The Act's award-time power that forces companies to prioritize government orders and hands-out loans for critical stuff, now aimed at this budget, carrier, spirits floored-a-based, and running out of runway fast. A lawyer said they need fresh cash or access to funds by next week's end, with a court date looming for a bankruptcy exit deal. This would be their second restructuring since 2025. Others just reviewed the government's term sheet, $500 million in debtor financing,

1:01but with a catch, they get warrants for $90% of the airline's equity. It's a big lifeline if they bite. Word is the offer on the table as talks heat up, potentially keeping those low-fair flights in the sky without a full crash landing. That's the story for today, U.S. News Today, Driven by AI.