The federal government may soon be the new owner of the nation’s most recognizable yellow planes.
The White House is reportedly exploring a bold strategy to take over Spirit Airlines, potentially repurposing the bankrupt carrier’s fleet for national defense and military logistics.
Under the proposed plan, Donald Trump would invoke the Defense Production Act to provide Spirit with essential funding.
According to reports from CBS News, the Pentagon would then tap into the airline’s “excess capacity for transporting troops, military cargo or other missions.” This maneuver would require the approval of Spirit’s creditors, but it could serve as a final lifeline for a company that is currently on the brink of total collapse.
Spirit’s financial situation has turned dire as it navigates its second bankruptcy in just two years. The carrier’s survival plan was largely built on the hope of stabilized fuel costs, projecting averages around $2.24 per gallon for 2026. However, the ongoing conflict in Iran has sent jet fuel prices skyrocketing to an average of $4.30 per gallon, nearly doubling the company’s estimates.
During a bankruptcy hearing on Thursday, an attorney for the airline delivered a warning, stating the carrier might only have days left to operate. With a recently missed interest payment looming, creditors could trigger a default at any moment, forcing Spirit to liquidate its assets entirely.
Trump addressed the situation directly from the Oval Office, signaling a preference for a full buyout over a traditional rescue package. “We’re thinking about doing it, helping them out and meaning bailing them out or buying it. I think we just buy it,” he told reporters. He noted the strategic advantage of acquiring the company’s physical assets while the market is down. “We’d be getting it virtually debt free. They have some good aircraft, some good assets, and when the price of oil goes down, we’ll sell it for a profit.”
The administration is reportedly discussing a loan of up to $500 million in exchange for an equity stake in the airline. While the White House and the Pentagon have yet to release an official statement, spokesman Kush Desai cautioned that details regarding the deal’s structure should be considered speculation until a formal announcement is made.
