Spirit Airlines close to a $500 million bailout from Trump administration

[OnlinePoker]

Source: CNN

Spirit Airlines is close to getting a $500 million bailout from the federal government, according to a source familiar with the negotiations.

The deal is expected to include the federal government taking a stake in the troubled airline, which had struggled to make money ever since the Covid pandemic.

It also means Spirit would avoid becoming the first significant US airline in 25 years forced to completely halt operations because of financial problems. Jet fuel costs have roughly doubled since the start of the war in Iran, derailing its plans to emerge from its second bankruptcy reorganization since 2024.

The source told CNN a deal could be announced as soon as late Wednesday night or Thursday. It is designed to give the airline a chance to complete its reorganization.

Read more: https://www.cnn.com/2026/04/22/business/spirit-airlines-federal-bailout

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Corporate welfare on display.

[walkingman]

1. There is not reason to bail out a business that is so terribly run...

and the stock is up about 500% in one day, could there be some insider trading?

[James48]

2. NO!

I’ve known Spirit since they were one DC-9 in Detroit.
Their business model depends on undercutting everyone else’s cost, and then trying to eke out a profit on the cheap cheap seats. They lose money because, well, they make bigger losses at volume.

They need to die a quiet death and let someone else try.

[AZJonnie]

3. Their business model relies on publishing fares that include basically NOTHING other than a seat

Which makes them look like the best deal going. But then when you go to actually use your seat, you discover the floating seat cushion and fold-out tray at your seat are an extra $10 each, the emergency oxygen mask service is $20, and if you want toilet stall privileges that's $10 upfront, or $25 if you pay at the time of use.

Okay, that's exaggeration for effect, but that is the idea. Also, the space on their flights is CRAZY small. Tiny seats, near-zero legroom. And most of the attendants have a bad attitude towards the customers, in my limited experience on their flights.

That's leaving aside that this is just ANOTHER instance of Trump's stupid actions directly costing taxpayers HUNDREDS OF MILLIONS (or BILLIONS). I got 100 internets to bet that the board at Spirit is full of MAGAts and campaign contributors as well. Because that's how the mob boss we current have as POTUS blatantly operates at all times. No way his admin gives them this bailout unless there's something in it for ME ME ME.

Fuck this, let them FAIL.

[reACTIONary]

5. I'm glad you explained that....

.... you were exaggerating. I was believing you for a while there!

[AZJonnie]

7. Lol, yeah. But TRUST ME, if Spirit COULD charge extra for those things, they damn sure WOULD

They nickle and dime the shit out of you so they can publish really competitive prices. To be fair though if you are going on a short trip and can fit all you need into a small carry-on, and don't mind being cramped (or you are a small person), they can be a decent option. For me the one thing they have going for them is they fly out of an airport that's VERY close to where I live, and the parking at this airport is much cheaper (though it's uncovered, so not the best when it's summer in PHX). So I've used them a few times. But I much prefer Southwest. More so back before they changed so many policies that used to make them kinda special in the marketplace, but at least SW still gives you more room, and the service is consistently better, with nicer attendants.

[Deuxcents]

4. TSF is not giving Spirit a bailout..the taxpayers are.

[ToxMarz]

6. If he signs the check, MAGAts will believe it came from him.

[Deuxcents]

8. O, yeah. They could never figure it out

[Chemical Bill]

12. Can he bail them out...

with Elon's tax money?

[Prairie Gates]

9. Privatize the profit, socialize the costs

Free market capitalism, always thus.

[LetMyPeopleVote]

10. This is a stupid move by trump

[Wonder Why]

11. He will spare no expense of taxpayer money to make lemonade out of rocks.

[JustABozoOnThisBus]

13. Spirit will open new routes to Congo

Trump has a bunch of passengers lined up, in chains.

Ok, the bad news: you're being deported/exiled to Congo. The good news: the airplane is painted bright yellow, very cheerful and happy.

[Fla Dem]

14. FROM THE TRUMP ADMINISTRATION!!!!! That's tax payers money. We bailed them out.

Am I wrong in my understanding? Shouldn't that spending been approved by Congress, just like any other spending???

[City Lights]

15. This enrages me!

There's always money for corporations, but rarely money for the average Jane or Joe American.